Bitcoin’s price is showing resilience, despite a cooling of spot buyer demand on exchanges. According to a recent report from Bitfinex, the emergence of sustained spot Bitcoin exchange-traded fund (ETF) inflows could counterbalance waning market activity, potentially propping up BTC prices. This comes as the cumulative volume of spot trades begins to flatten, signaling a near-term price consolidation.
ETF Inflows Buoy Bitcoin Price Outlook
Bitfinex analysts, in their September 23 report, highlighted the role of Bitcoin ETFs in supporting the cryptocurrency’s price. “Sustained ETF inflows could buoy the BTC price,” they stated, pushing back against predictions of a consolidation phase due to the decline in spot Bitcoin purchases on exchanges. Spot buying activity, as reflected in Cumulative Volume Delta (CVD) metrics, has leveled off after Bitcoin hit $63,500. This slowdown typically suggests limited upward momentum, but the analysts believe ETF activity could provide a significant boost.
September 24 marked the fourth consecutive day of positive ETF inflows, with $136 million pouring in, according to Farside data. The timing is noteworthy, as September has historically been a bearish month for Bitcoin. Data from CoinGlass reveals an average 4.49% loss for the cryptocurrency during this period over the last 11 years. Yet, despite this negative trend, Bitcoin has managed a 6.26% price increase since September 18, now trading at $63,713.
Will ETF Inflows Offset Slowing Spot Demand?
Bitcoin’s dominance in the broader crypto market has slipped by 1.35% in the same timeframe, now standing at 57.62%, according to TradingView data. While this dip in dominance suggests altcoins may be gaining ground, the uptick in ETF inflows offers a silver lining for Bitcoin bulls.
The analysts argue that continued ETF inflows, combined with a rally in traditional finance markets like the S&P 500, could push Bitcoin higher. However, without a resurgence in spot market demand, the most likely outcome is a price consolidation, or even a partial correction.
Political Factors Could Shape Bitcoin’s Future
Looking ahead, broader market forces like the upcoming U.S. presidential election in November could also play a pivotal role in determining Bitcoin’s next price movement. While there is a consensus that political uncertainty could impact the market, some industry leaders remain bullish.
Also Read: Bitcoin Eyes $70K After 18% Rally – Will The Golden Cross Break Its 7-Month Downtrend?
On September 20, Geoff Kendrick, global head of digital assets research at Standard Chartered, predicted Bitcoin could hit $200,000 by the end of 2025, regardless of the election’s outcome. This optimistic long-term view contrasts with short-term forecasts of price consolidation but underscores the continued belief in Bitcoin’s upward potential.
Despite a typically bearish September and a slowdown in spot demand, Bitcoin’s price could find support from sustained ETF inflows. While price consolidation remains likely if spot buying doesn’t pick up, a combination of ETF momentum and broader market trends could keep Bitcoin on an upward trajectory. The next few months, particularly the U.S. election in November, will be crucial in determining whether Bitcoin continues its climb or sees a pullback.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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