Bitcoin has accounted for the largest share of the $83 billion in ETF inflows into the cryptocurrency market. BTC price continues to rise.
Bitcoin (BTC), the world's largest cryptocurrency, continues to show market strength, holding on above $72,000. Investor sentiment continues to remain strong as Bitcoin prices continue to hit new highs.
Bitcoin daily inflows hit highest since 2021
Bitcoin analyst Willy Woo says daily inflows of funds stored in the Bitcoin network have reached $2 billion, a level comparable to the last major bull run. Woo predicts that this time around, inflows are likely to increase further. He attributed the significant increase in capital inflows to the opening of spot ETFs, which greatly facilitated the flow of funds into the Bitcoin network.
On-chain data also shows that small Bitcoin wallets have been accumulating while whales are selling their supplies. As Bitcoin continues to hit all-time highs, the number of small wallets holding less than 0.1 BTC has continued to rise over the past two weeks, adding 277,000, according to on-chain data provider Santiment. Conversely, the number of wallets holding 1,000 BTC or more decreased, with 105 fewer wallets during the same period.
BTC price could rise to $83,000
Renowned cryptocurrency analyst Ali Martinez has revealed significant developments in the cryptocurrency market, with approximately $83 billion flowing into various digital assets. Notably, a large portion of this total inflow (totaling $75 billion) went to the two leading cryptocurrencies: Bitcoin and Ethereum.
Martinez’s analysis based on Bitcoin’s MVRV pricing band suggests that the key price target for Bitcoin is $83,035. The observation underscores Bitcoin’s growth momentum and investor interest, with the cryptocurrency’s valuation poised to reach important milestones.
The influx of money into Bitcoin and Ethereum reflects a broader trend of institutional and retail investors seeking entry into the cryptocurrency market.
On the other hand, U.S. stocks also performed strongly despite higher-than-expected February inflation data. Fidelity Global Macro Director Jurrien Timmer highlighted an important trend in the financial landscape, emphasizing that liquidity will recover regardless of the Fed's stance.
Timmer noted that overall liquidity, as indicated by the Fed's balance sheet minus reverse repos (RRPs) and the Treasury's cash balance at the Fed (TGA), has been steadily increasing since mid-2023. The upward trend in liquidity coincides with an increase in stock prices. Additionally, any major correction in Bitcoin price or the cryptocurrency looks unlikely as liquidity remains strong.
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