US investors have dumped new money into Bitcoin exchange-traded funds over the past six days, helping the price of the No. 1 cryptocurrency soar again.
Data from Farside Investors shows that nearly $1 billion has been pumped into funds since Tuesday last week.
The price of Bitcoin was Recently traded At approximately $65,860, down slightly over the past 24 hours but up 1% over seven days. The leading cryptocurrency reached a weekly high of $66,891 yesterday.
Funds managed by BlackRock, Morgan Stanley and Grayscale took in more than $930 million in six straight days after weeks of lackluster flows and price volatility.
Bitcoin is currently approximately 50% lower than in October register From $126,080 after a massive liquidation event, the war in the Middle East and inflation all affected the cryptocurrency.
Bitcoin potential upside?
Analysts remain cautious about the future price path of digital assets as markets reckon with a re-escalation of the Trump administration’s war with Iran and inflation.
European asset manager CoinShares last week He said While investors have returned to putting new money into Bitcoin via exchange-traded products, other factors may be preventing digital asset markets from rising.
“We have been saying for some time that Bitcoin may have reached or are close to a threshold,” wrote James Butterville, head of research at CoinShares. “But we don’t see any significant upside potential from here.”
Current macroeconomic headwinds, such as the US bombing of Iran and rising oil prices, may cause inflation to rise again. The price of Bitcoin has typically performed well on news that inflation is falling because investors expect interest rates to fall.
And another report issued by NYDIG last week He claimed The current stagnation of the asset is due to supply mechanisms and not risk sentiment.
The report revealed that Bitcoin’s year-to-date performance makes it the worst-performing asset – losing against US Treasuries, silver, and currencies such as the Swiss franc.
She added that if Bitcoin’s price action matches other pullbacks — such as the 2022 bear market — there could be a “potential cycle decline near $38,000-$39,000.”
