Bitcoin ETF Inflows Surge to $870M Amid FOMO as Price Nears All-Time High
Bitcoin ETF inflows experienced a remarkable surge of $870 million on Tuesday as the cryptocurrency’s price came within reach of a new all-time high. BlackRock’s iShares Bitcoin Trust (IBIT) saw trading volumes skyrocket to $3.36 billion—its highest in six months, according to Coinglass, bringing the fund’s Bitcoin assets under management to $17.2 billion.
ETF volume spikes usually accompany market downturns or crises, noted Bloomberg Intelligence analyst Eric Balchunas on Twitter. Yesterday’s surge, he suggested, likely reflects institutional FOMO (fear of missing out), with Bitcoin’s price nearing its March 14 record high of $73,737.94.
Meanwhile, the U.S. nonfarm payroll (NFP) report, due Friday, could influence the Federal Reserve’s interest rate decisions. Singapore-based QCP Capital highlighted in a trading note that the NFP, anticipated to show a 110k increase, will be pivotal in determining the Fed’s next move. The CME FedWatch Tool indicates 99.6% of traders expect a rate cut of 25-50 basis points at the Fed’s next meeting.
Today’s U.S. GDP report showed a Q3 growth of 2.8%, a slight dip from the 3% growth in Q2. “Bitcoin has entered an acceleration phase,” remarked BRN analyst Valentin Fournier, linking this trend to favorable market catalysts like the upcoming presidential election. Fournier advised staying heavily invested in Bitcoin over Ethereum, with the potential for Bitcoin to break its all-time high if current momentum holds.
