Bitcoin ETFs Bring In Nearly $3Bn In Two Weeks – BTC to $145K Next?

Bitcoin (BTC) has been steadily rising since the month started and has accumulated a 6.7% gain this month after the head of the Federal Reserve first hinted at an upcoming rate cut during his speech at Jackson Hole.

Fast-forward less than a month, the federal funds rate is now 25bps lower than it was back then and market conditions have improved.

However, Bitcoin does not seem to be reacting much, possibly as capital is now rotating toward altcoins as yield-chasers take the main stage.

Bitcoin’s Total Value Locked (in BTC) – Source: DeFi Llama

The top crypto has had a remarkable last 12 months as the launch of the Babylon Protocol ramped up Bitcoin’s DeFi ecosystem and propelled the network’s total value locked (TVL) to 11,500 to 75,332 BTC tokens.

This DeFi app offers staking for Bitcoin holders through a non-custodial solution. Even though the annual percentage yield (APY) is quite low at around 0.3%, this is the only decentralized protocol that currently offers this kind of Bitcoin-native solution to earn passive income.

Expanding BTCFi is not an easy feat without introducing layer-2 chains and other similar protocols as the network can only process 7 transactions per second. Nonetheless, Babylon’s bid to get things moving has been positive and could trigger a wave of new dApps that tackle this scalability issue creatively.

Investors are Pouring Billions Into BTC ETFs Despite Ongoing Consolidation

Meanwhile, investors have not been deterred by Bitcoin’s range-bound trading lately as exchange-traded funds (ETFs) linked to the token have received billions of dollars in the past two weeks.

Data from Farside Investors shows that these products brought in $2.9 billion since September 8 and have only seen one day of negative net inflows during that period. Today’s figures have not yet been published but it is safe to say that we may end the week above the $3 billion mark.

At a point when BTC is obviously consolidating, this is evidence of an ongoing phase of consolidation that could precede a big move for the top crypto in the next few days.

Market conditions are quite favorable amid the Federal Reserve’s latest moves but investors’ sentiment remains relatively cautious. That’s what keeps BTC and most other tokens from climbing higher but these should change within the next few days.

Open interest (OI) in BTC futures remains quite high at around $87 billion. This figure is nearly twice as high as the levels seen in March this year, meaning that the market is heavily positioned for a bullish outcome.

Daily Chart Favors $145K Target for BTC

Looking at the daily chart we can see that the token broke its latest downtrend and started to surge after hitting the $108K support. It first rose above $112K and this latest pullback could now be heading there.

BTC/USD Daily Chart (Coinbase) – Source: TradingView

This should be a decent area for a late entry as the token could continue its path upwards as the Relative Strength Index (RSI) remains in positive territory. After this brief period of consolidation, momentum indicators have now normalized.

A bullish breakout above the token’s latest all-time high could trigger a first move to $130K and then $145K – our near-term target for the top crypto. This would translate into a 24% gain for BTC for those who buy at the $112K mark.