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Crypto market news highlights today
Bitwise Invest CIO Matt Hougan took to social media platform X on Monday to counter a researcher’s claim that investment advisor adoption of the Btcoin Spot ETF is low. “Investment advisors are adopting Bitcoin ETFs faster than any new ETF in history,” Hougan said in his post. BlackRock’s Spot Fund “has attracted $1.5 billion in net inflows from investment advisors. [Bianco] called this “small” because it is a fraction of the $46 billion that has flowed into Bitcoin ETFs overall.”
“Hougan’s comments came in response to a lengthy post by market research expert Jim Bianco, who said at X on Sunday that both Bitcoin Spot ETFs “have not become vehicles for tradfi or baby boomer adoption” and that adoption by financial advisors is limited. “CryptoQuant shows that most Bitcoin Spot ETF inflows come from on chain holders moving back to tradfi accounts, so very little ‘new’ money is coming into the crypto space,” Bianco said.
“If you exclude all other flows and only XEM the $1.5 billion linked to investment advisors, IBIT would be the second fastest growing ETF launched this year (excluding other BTC ETFs),” he said, adding that more than 300 ETFs have launched this year.
Bitwise
Bloomberg ETF analyst Eric Balchunas defended Hougan’s point. “IBIT’s advisor allocation alone (totaling $1.5 billion) [has] more organic inflows than any other ETF launched this year,” he said on X.Bitwise Invest’s bitcoin ETF spot with about $2 billion in Assets Under Management, according to The Block’s data dashboard. BlackRock’s IBIT fund is the largest on the market with nearly $20 billion in AUM.
Bitcoin BingX Chart
Bitcoin 1D Chart 09/10/2024 | Source: TradingView & BingX
The recovery in the stock market, investors’ expectations for upcoming U.S. inflation data, and risks to the U.S. dollar’s dominance are driving Bitcoin’s recent price surge. Bitcoin fell 7% from September 5 to September 7, but still maintained a daily closing price of nearly $54,000 and has since recovered some of its losses, reaching $55,300. The move mirrors the price action in global stock markets.
However, there are several factors, including expected inflation data and growing risks to the US dollar's dominance, that could explain Bitcoin's rise. S&P 500 Futures Contract have risen 1.4% since hitting a low on September 6, as investors grow more confident that the US central bank will cut interest rates to stimulate the economy in the coming months. Economists expect inflation to slow, which Capital previously been a barrier to less restrictive monetary policy. The US CPI is expected to rise 2.6% year-on-year in August, with the report due on September 11.
The impact of lower inflation on Bitcoin is not straightforward or entirely clear, as part of the cryptocurrency’s appeal is its ability to hedge against risk due to its fixed monetary policy. However, some analysts believe that Bitcoin’s price benefits from increased liquidation in the system as businesses and individuals gain access to cheaper Capital and fixed income investment yields fall. User apsk32 took to social media X to demonstrate that the previous cycle of interest rate cuts in the United States, which began in 2019, initially fueled bullish momentum for Bitcoin, although this proved unsustainable in the medium term. However, the analyst theorized that a potential correction to the $45,000 to $55,000 range could provide an excellent entry point for “those who are still holding on.”
Therefore, it is prudent to XEM any bullish predictions for Bitcoin prices with caution given the suspicion that interest rates will fall. Some argue that Bitcoin's biggest threat comes from competition with technology stocks , whether due to the long-term correlation between the two assets or simply because these companies provide reliable cash flows and growth opportunities in a context of relative scarcity.
BTC support is at $56,000 and resistance is at $58,500.
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