Bitcoin ETF Inflows Hit $223M as Institutional Demand Grows

The price of Bitcoin (BTC) experienced a notable rally, surging over 5% on Wednesday after bouncing back from a critical support range of $94.3k to $96.6k earlier in the week. The leading cryptocurrency retested its previous all-time high (ATH) range, fluctuating between $101,219 and $101,998, before undergoing a slight correction to trade at approximately $100,780 during Thursday’s mid-London session on December 12.

The Bitcoin Futures Open Interest (OI) saw an increase of 6%, settling around $62.8 billion at the time of this report. Recent days have witnessed significant daily liquidations in the leveraged market, leading to a considerable decrease in Bitcoin’s funding rate below the recent norm.

Bitcoin Whales Relentlessly Accumulate

Over the past year, the supply of Bitcoin on centralized exchanges has sharply declined, influenced by a surge in demand from institutional investors. In the last 30 days alone, Bitcoin’s supply on centralized exchanges (CEXes) has decreased by approximately 120k, hovering around 2.23 million at the time of writing.

As institutions increasingly adopt Bitcoin, the market potential continues to expand. Explore our Bitcoin price prediction for expert insights on future trends!

According to data from Cryptoquant, Bitcoin has consistently attracted around $80 billion monthly from long-term investors over the past year. Notably, recent capital inflows into Bitcoin have significantly surpassed funds inflows over the past 15 years.

Additionally, whale investors have been persistently accumulating Bitcoin, anticipating the United States’ potential approval of a strategic BTC reserve. Recent market data indicates that US spot Bitcoin ETFs witnessed a net cash inflow of approximately $223 million on Wednesday, driving the cumulative total net inflow to about $34.58 billion.

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Crypto Market Trends: Why Prices Are Up but Activity Slows

What Next?

From a technical perspective, Bitcoin’s price exhibits a different signal compared to the current fundamentals. On the daily chart, Bitcoin’s price against the US dollar has formed a potential double top pattern, coupled with bearish divergence on the daily Relative Strength Index (RSI), indicating a possible midterm correction.

If Bitcoin consistently closes above $102k in the coming weeks, it may target $120k next, aligning with the 0.618 daily Fibonacci extension. However, Bitcoin’s price could potentially retrace toward the support level above $85k in the upcoming weeks before resuming its bullish rally early next year.