Bitcoin Faces Downward Pressure Amid Geopolitical Tensions, but ETF Inflows Soar
- Bitcoin dropped 2.8% in October, driven by geopolitical tensions and rising miner costs, tightening the supply.
- Bitcoin ETFs have seen $45 billion in inflows this year, with BlackRock leading the way, showing strong institutional interest.
- Analysts predict Bitcoin could reach $200k post-election, with institutional investments and a stable macro environment driving growth.
During the last 30 days, the drop in Bitcoin price made its 2.8% and it has so majorly affected due to rising Geopolitical tension plus increasing mining costs. The market has been volatile, with Bitcoin lately sliding below support levels, signaling a negative trend.
At the same time, many miners are battling to stay solvent as expenses rise. That supply-demand shift could cause Bitcoin to become scarcer which would add further pressure to its short-term outlook.
Bullish Signals from Bitcoin ETFs
On the plus side, Bitcoin ETFs have had significant inflows this year, totaling more than $45 billion. Significantly, institutional interest is increasing, indicating that key players may anticipate a positive breakout. Inflows from major funds like BlackRock and Fidelity have added a sense of optimism in an otherwise shaky market.
Moreover, technical indicators show that Bitcoin is establishing higher lows, suggesting potential for a bullish reversal. Bitcoin has also seen accumulation from long-term holders, with many large investors holding onto their positions despite facing short-term losses. Furthermore, short-term holders have found relief as recent market rallies boosted profitability.
Analysts Predict a Bullish Future
Following the November US presidential election , Bernstein analysts anticipate that Bitcoin will achieve new all-time highs. Zach Bradford of CleanSpark predicted that the post-election climate will be more stable, providing good momentum for Bitcoin. Growing capital investments and a positive macroeconomic environment led him to believe that Bitcoin could reach $200,000 within the next 18 months. Additionally, Bitcoin ETFs remain in a strong position for further growth, despite mixed performance this October.
BlackRock’s IBIT fund recorded notable inflows of $40.8 million over two days, though other funds have seen modest outflows. However, with options trading now available for some ETFs, institutional access to Bitcoin is expanding, which could drive additional demand in the coming months.
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
coin_news.disclaimer
coin_news.may_like
BTC breaks through $69,500
Berkshire Hathaway's cash reserves exceed $300 billion
AAVE breaks above $140