How Bitcoin ETFs can be a potential catalyst for BTC’s price

• Interest in Bitcoin ETFs grew significantly as inflows surged.
• Price movement remained neutral, holders stayed profitable.

Bitcoin [BTC] ETF volumes grew materially over the past month, indicating rising interest in BTC from the traditional financial sector.

Will Bitcoin rise?

Bitcoin ETFs surged in June, marking a record-breaking start to the month.

This strong performance was evident across several key metrics, including fund flows, asset under management (AUM), trading volumes, and individual fund AUM reaching new highs.

Source: SQRR

Fueled by investor enthusiasm, all Bitcoin ETFs witnessed a net inflow of approximately $1.75 billion during the week.

IBIT and FBTC were the major drivers, collectively bringing in a staggering $1.63 billion in net inflows. Notably, GBTC was the only fund to experience net outflows for the week, at -$0.12 billion.

It’s important to remember that this comes amidst a record-breaking 18 consecutive days of overall net inflows for all funds, reaching a total of $15.66 billion.

Source: SQRR

The total assets under management (AUM) for Bitcoin ETFs also surpassed a significant milestone, reaching $62.33 billion by the week’s end, a clear indication of growing investor confidence in this asset class.

Despite the surge in price, BTC hasn’t been able to push past the $70,000 mark over the last few days. At the time of writing BTC was trading at $69,388.69 in the last 24 hours, it had seen a minimal surge of 0.06%.

Since the 21st of May, after testing the $72,245.64 mark, Bitcoin had been moving sideways. Even though the price movement of BTC was mostly neutral, the CMF (Chaikin Money Flow) for the king coin declined.

This meant that the money flowing into BTC had reduced.

Moreover, the Awesome Oscillator(AO) had turned negative. This indicator measures momentum by comparing recent price movements to historical data.

A decline suggests the recent BTC price increases might be losing strength, potentially indicating a shift towards a bearish sentiment with more sellers or less buying pressure.

Source: Trading View

What should holders do?

Most BTC holders remained profitable at the time of writing. This was indicated by the MVRV ratio for BTC remained high.

Read Bitcoin’s [BTC] Price Prediction 2024-25

The Long/Short difference for BTC had declined significantly as well, indicating that the number of short-term holders accumulating BTC had declined.

The temperament of these short-term holders and their willingness to sell or keep their holdings will play a huge role in determining BTC’s price.

Source: Santiment