Investment in bitcoin (BTC) through exchange-traded funds (ETFs) grew yesterday. With this performance, the price of the coin is staying strong, mostly above $100,000 (USD).
Bitcoin ETFs in the United States collected $597 million yesterday, more than double the previous day in which they registered inflows of USD 223 million, as reported by CriptoNoticias. This reflects a strengthening of the bullish sentiment of traditional and institutional investors, who are the ones who usually turn to such instruments.
With yesterday’s result, bitcoin ETFs marked 11 consecutive days of capital inflows. In this way, it is evident that investors are considering the current market situation as a buying opportunity.
Given this demand, the price of bitcoin is mostly resisting above USD 100,000 since last week, when it exceeded this goal for the first time in history. However, it has not yet recovered USD 103,000, a level it reached on December 5, registering a new all-time high.
You can see this in the chart below which shows the price of bitcoin and the flow into its ETFs.
USD 100,000 has served as a strong resistance zone since late November and early December. But, with its improvement, the bitcoin market try to convert this area into support since yesterday, as the following graph shows.
Strong resistances (temporary highs) often become supports (temporary lows) during sustained uptrends, due to market psychology. In addition, the increase in prices from five to six figures can add an additional burden for this phenomenon to occur.
Therefore, It is expected that, if the buying momentum continues, the market will seek to maintain this area as a solid floor.. Consequently, this could provide the kickstart to motivate greater demand.
Ethereum ETFs show similar behavior to BTC
Meanwhile, the ether (ETH) ETFs, the Ethereum cryptocurrency, the crypto asset with the most capitalization after bitcoin, they perceive a correlated dynamic in economic power. They recorded inflows of USD 273 million yesterday, more than double the USD 102 million they had the previous day, marking their 11th consecutive positive day.
This movement has contributed to the price of ETH approaching USD 4,000, a level it momentarily surpassed last week for the first time since March.
With such a panorama, there is currently widespread interest in the market, which is not only attributed to bitcoin. This differs from what was seen during the year, where inflows into BTC ETFs and outflows into ETH ETFs prevailed.