Bitcoin Inflows Drops Sharply as ETF Euphoria Dies Down
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As the euphoria around Bitcoin ETFs in the US fades, CoinShares reports show that inflows into digital asset investment products or crypto funds have dropped by over 80% to $288 million as of last week.
As of October 22, crypto funds recorded inflows running up to $1.47 billion, the highest inflows in the industry’s history by a large margin. This jump in inflows came from the hype around the launch of the first BTC-based exchange-traded fund (ETF) called the ProShares Bitcoin Strategy ETF (ticker symbol: BITO), which launched on the NYSE.
However, by the last week of October, inflows into BTC ETFs diminished to a paltry $53 million from US investors.
Based on the recent inflows, total fresh investments into digit assets stands at a whopping $8.7 billion, year-to-date, a 30% jump from the inflows recorded in 2020. The benchmark cryptocurrency claimed the lion share in inflows, totaling $269 million last week and $2 billion in the whole of October.
Meanwhile, Ethereum came in second place with a total of $17 million last week. CoinShares reported that a robust performance by altcoins helped Ethereum claim 32% in inflows.
Other altcoins like Solana, Cardano, and Polkadot also recorded significant inflows of $15 million, $5 million, and $6.2 million, respectively.
Key Bitcoin Levels to Watch — November 2
Despite a bullish undertone across the market, BTC continues to struggle with maintaining any meaningful gains. The benchmark cryptocurrency struggled to break the $61,785 resistance and the top of our wedge.
That said, my bullish flag breakout projection still stands, with the $63K – $64K pivot zone as my first target. On the flip side, we could see a bearish slide to $60K support over the coming days if bulls fail to hold above the $61K level. Nonetheless, a bearish continuation below $60K seems unlikely at the moment.
Meanwhile, my resistance levels are at $61,785, $63,000, and $64,000, and my key support levels are at $61,000, $60,000, and $59,000.
Total Market Capitalization: $2.65 trillion
Bitcoin Market Capitalization: $1.16 trillion
Bitcoin Dominance: 43.6%
Market Rank: #1
