Bitcoin ETFs have their best day in over a month, but bitcoin’s price is still in choppy waters
“This is hardly the environment for high-risk assets to fly.”
Bitcoin ETFs posted their biggest inflows since October 7 on Tuesday, with the funds registering $524 million in inflows. BlackRock’s iShares Bitcoin Trust took the lion’s share, with $224.22 million, according to SoSoValue.
Bitcoin has been trading in the $102,461 to $105,257 range in the past 24 hours, down 16.7% from its October 6 all-time high as traders await the House vote on ending the longest US government shutdown in history.
Timothy Misir, head of research at Blockhead Research Network, said that while bitcoin ETF inflows are encouraging, the longer pattern shows cautious, episodic demand rather than a sustained bid.
“The recovery requires broader, consistent spot flows to break the $108,000–$110,000 battleground,” he said.
“This is hardly the environment for high-risk assets to fly,” Nic Puckrin, cofounder of Coin Bureau, told Sherwood News, adding that while the tech-heavy Nasdaq has continued to advance, digital assets, however, have had no such luck.
“The crypto market has been struggling to regain momentum since October’s pandemonium, and bitcoin appears to be fighting one battle after another, dragged down by US dollar strength and higher Treasury yields, long-term holders selling, and macro uncertainty,” he said.
Puckrin said that as the US reopens and data starts flooding back in, bitcoin’s price might continue to wobble.
“The real test will be the FOMC’s interest rate decision on December 10, but it remains likely that the news will be positive, which could set the stage for a Santa rally in crypto and other risk assets,” he said.
Meanwhile, TD Cowen analysts set a base case assumption of bitcoin hitting $141,277 by December 25, with an upside scenario of $160,000 and a much bleaker downside scenario of $60,000.
