After Bitcoin prices fell as the Coinbase case progressed, it was once again targeting $70,000 at the time of writing. Earlier yesterday, we mentioned that strong inflows into the ETF channel could push Bitcoin prices higher. Then, surprisingly, the decision against Coinbase was announced, and FUD related to the Stake service dragged down the market.
Why is Bitcoin rising?
As of this writing, the rise in Bitcoin prices was driven by a $362 million inflow into BlackRock’s spot Bitcoin ETF IBIT on March 27. Meanwhile, ARKB helped offset GBTC outflows with exciting net inflows of over $200 million. We saw net inflows of over $260 million, including $300 million in outflows from GBTC and inflows from other ETFs.
This suggests that investor risk appetite may increase in the coming hours as demand from the ETF channel remains active. The impressive recent inflows seen by ETFs like ARKB may reflect institutional demand, as these ETFs have become accustomed to weak inflows.
Over the next two months, institutions will file reports with the SEC about the ETFs they purchase. In these reports, we will see more clearly who actually belongs to the movement that raises suspicions about corporate entry. Possible acquisitions by popular companies can also have a serious positive impact on the market.
Bitcoin (BTC) Predictions
The SEC must decide which cryptocurrencies are securities and which are not. As we saw in this week’s letter from the U.S. House of Representatives, politicians are tired of the confusion this issue creates. Conflicts between agencies can also undermine their reliability.
On the other hand, April will see the halving. Since each block reward halving has historically triggered price increases, investors are likely to take bolder action in the final days of March .
April was also marked by clarification on the performance of the 3-month spot Bitcoin ETF. The ETF’s trading volume is exciting and net inflows are strong, which are important details for investment advisors to recommend spot Bitcoin ETFs to their clients. Additionally, major investment firms will be required to review the 3-month data ending next month and label the BTC ETF as investable, uninvestable, or risky
