Bitcoin ETFs See Large Dip in Inflows as 3rd Quarter Ends: Market Hopes for a Strong October – See Expert Insights Now

The Bitcoin (BTC) ETF saw its 4-week positive streak end this week with a dip in inflows. Despite lower netflows, the BTC has rebounded, and the institutional support for the currency remains solid. 

The Positive Streak Ends As the Bitcoin ETFs’ Inflows Dip

The US spot BTC Exchange Traded Funds (ETFs) have witnessed a dip in inflows after the four-week positive streak. The ETFs have undergone a recalibration with $418.25 million in outflows. Despite marking a lower $902.50 million in netflows in the past week, the demand for BTC ETFs remains high. The ETFs are the preferred channel for institutional investors as they provide regulated and formal exposure to a rather dynamic and unpredictable emerging crypto market. Nevertheless, the experts attribute the changes in ETF flows to the quarter-end profit-taking and portfolio rebalancing. 

ETF fund flows tool — track daily ETF inflows/outflows, helps verify weekly and daily inflows/outflows for BTC ETFs.

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How is BTC Currently Faring in the Market?

As of 29th September, the market leader BTC is trading around $111,765.48, and the price has increased by around 2.12% in the past 24 hours. The trade volume had surged more than 60% within a 24-hour timeframe, currently standing at $39.71 billion. The BTC has rebounded to $111,765.48, even after the $1.6 B record crypto liquidations, mainly due to the whale activity. Whales are investors who hold a significant quantity of a particular cryptocurrency, enough to influence market prices through large buy or sell orders. They absorbed the selling pressure in spite of the downturn. $3.3 billion worth of BTC was accumulated by whales in the past few days. 

On the other hand, the overall market sentiment is neutral to bullish, as indicated by the Fear & Greed Index value of 50, which has moved away from fear to neutral. The shift indicates that the investors are moving from an extremely cautious state to a neutral stance bordering on bullish sentiments. Moreover, it’s trading above the 200-day simple moving average of $ 104,288, and it has had 16 green days in the past 30 days. 14-day simple moving average stands at 46.29.

Any movements in BTC’s price would have an impact on the whole crypto ecosystem, as it dominates the market with a market cap nearing $ 2.24 trillion. Experts predict a bullish scenario for the upcoming month, given that macroeconomic conditions remain stable. According to Shawn Young, chief analyst of MEXC Research, Bitcoin is currently consolidating rather than weakening.

Market Hopes for a Strong October 

The BTC had a tumultuous September amidst record crypto liquidations and a larger, uncertain macroeconomic landscape. As the events referred to as ‘Red September’ draw near the end, the crypt community is anticipating a stronger October. Historically, October had been a month where BTC reversed previous setbacks and became stronger. There are several key factors that support the optimistic forecasts, specifically around BTC and for the cryptomarket as a whole. 

• The BTC remains resilient even after the massive liquidations, as the whales stepped in to absorb the selling pressure. The whale activity suggests an increased confidence in the crypto market ahead of the last quarter.
• A stronger BTC would further strengthen the crypto ecosystem and thus positively impact the prices of other altcoins as well.
• Despite the bumpy ride in September, the institutional investments remain robust, and the supply constraints due to halving are further strengthening the optimism.
• The pro-crypto places of the US government are expected to boost investor confidence.
• Furthermore, more ETF approvals for altcoins such as XRP are anticipated in October, which would further strengthen the crypto market as it opens doors to more institutional investments in the crypto market. 

Also Read: Why October Could Be the Best Month for Bitcoin

Why Crypto Community Remains Cautious

Notwithstanding the historic precedents, not everyone shares the optimism. Several factors, both external and internal, are making the investors cautious. The major factor is the upcoming expiry of around $23 worth of options. Any movements from traders regarding the options would have a decisive impact on the world’s largest cryptocurrency and its market peers. According to experts, a breakout above resistance around $112,600 could strengthen momentum; further $115,400 remains as a key resistance level. 

Falling below the support level of $106,000 and $107,000 is a cause for concern. The experts are not ruling out a major dip as the overall macroeconomic signals remain uncertain. If the overall economy remains healthy and the facilitatory regulatory policy continues, a strong October is definitely in store for the crypto stakeholders. Even so, the investors are recommended to exercise caution as the crypto market remains highly dynamic and keep themselves updated about the key market indicators. 

For further insights on the market outlook and key crypto events, check out our detailed analysis on why October will be critical for crypto, covering Bitcoin’s potential crash risks and XRP’s ETF turning point.