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Bitcoin ETFs are Leading Ongoing BTC Price Rally -CryptoQuant Research

By:
Ibrahim Ajibade
Updated: Feb 17, 2024, 18:23 GMT+00:00

According on-chain analytics firm, CryptoQuant, 75% of new BTC investment has come from the 10 newly-launched ETFs approved by the US SEC in January

Bitcoin (BTC) ETFs Price

In this article:

Key Insights:

  • Bitcoin (BTC) price soared to a new weekly peak of $52,858, on Feb. 15 amid heightened institutional inflows. 
  • According to CryptoQuant head of research Julio Moreno, ETF demand was the main driver behind Bitcoin’s price surge. 
  • On-chain analytics firm, CryptoQuant, an estimated three-quarters of new BTC investment has come from the 10 newly-launched ETFs approved by the US SEC in January. 

Bitcoin (BTC) price soared to a new weekly peak of $52,858, on Feb. 15 amid heightened institutional interest.  A research report recently published CryptoQuant provided deeper insights.

ETFs Are Leading Ongoing Bitcoin (BTC) Price Rally

Bitcoin price has entered a remarkable 37% rally in the last 3 weeks dating back to Jan 23.

According recent research report publish by cryptocurrency data analytics platform. an estimated 75% of new Bitcoin investments come from the 10 newly-launched spot Bitcoin exchange-traded funds (ETFs) that were approved by US SEC on Jan. 11.

The according to a Feb. 14 report by CryptoQuant however excluded Grayscale’s Bitcoin Trust (GBTC) ETF currently embroiled in sell-offs, management fee restructuring and a court liquidation process involving Genesis.

“We estimate over 75% of new investment into Bitcoin are coming from these ETFs. Moreover, investment from these ETFs has increased to 2% of the total historical investment in Bitcoin in just one month as measured by the realized market capitalization,” -CryptoQuant Report

After initial controversy surrounding sell-off involving GBTC ETF triggered a market wide liquidations on Jan 23, the other 10 ETFs have since found their footing.

Bitcoin (BTC) 1-month market capitalization chart | Source: Coinmarketcap
Bitcoin (BTC) 1-month market capitalization chart | Source: Coinmarketcap

Thanks to rapid inflows from ETF participants, Bitcoin market capitalization has added $240 billion to its market cap between Jan 23 and Feb 17, breaking above the $1 trillion valuation for the first time since 2021.

BTC Price Forecast: Can the bulls defend the $50,000 Support.

With ETFs closed for trading at the weekend, BTC could experience reduced buying pressure.

However, considering that investors still reeling in profits from last weeks inflows, the bulls will likely hold. If they can defend the $50,000 support this weekend, it puts BTC in prime position for another  rally towards $60,000 in the coming week.

But if that support level fails to hold, BTC price is at risk of dropping toward the 20-day SMA at $46,300, as depicted below by the Bollinger band technical indicator.

Bitcoin (BTC) Price Forecast, Feb 17, 2024 | Source: TradingView
Bitcoin (BTC) Price Forecast, Feb 17, 2024 | Source: TradingView

On the flip side, strategic investors could look to make rapid purchases while the market cools off at the weekend. This could inadvertently send BTC price into an upswing. In this case, the $53,100 resistance highlighted by the upper Bollinger band could form a major roadblock.

 

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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