The ETF Bitcoin di BlackRock has recorded unprecedented trading volumes, indicating a wave of buying driven by the fear of missing out on profit opportunities.
In the meantime, investors are watching with trepidation as the new all-time high of Bitcoin approaches. In this article, we will see all the details.
Bitcoin towards new all-time highs, boom in trading volumes and BlackRock ETF trading
The Bitcoin ETF by BlackRock experienced a historic day, marking the highest trading volume in the last six months.
On October 29, the ETF listed as IBIT recorded transactions amounting to 3.35 billion dollars, an increase that highlighted a growing frenzy among investors attracted by the opportunities in the cryptocurrency market.
According to the analyst Eric Balchunas from Bloomberg, this surge confirms the phenomenon of “FOMO”, or the fear of missing out, with which many investors seem to approach Bitcoin, driven by the possibility of a new wave of bull markets.
Bitcoin, traded at around 72,390 dollars, is now less than 2% from its all-time high. The race for Bitcoin ETFs is not limited to BlackRock, even though their IBIT ETF has recorded the highest peak.
It is indeed followed by the Grayscale Bitcoin Trust (GBTC), with inflows of 390.3 million dollars on the same day. Balchunas explained that the increase in volumes could result from two phenomena.
That is, a real buying frenzy or a growth in high-frequency arbitrage trading activity.
Not by chance, the phenomenon of FOMO is often associated with the fear of investors of missing out on a potential profit opportunity, especially when the underlying asset is near historical price levels.
October 29 was, by total volume, the third most active day for Bitcoin ETFs in the United States since April 1, 2024, with a combined trading volume of 4.64 billion dollars across various ETFs.
The sentiment of many investors seems clearly oriented towards an upward trend. A dynamic also confirmed by the analyst Alex Thorn of Galaxy Digital, who described the event as indicative of a growing enthusiasm in the sector.
The inflows into ETFs and the impact on the price of Bitcoin
The analysis of inflows shows that Bitcoin ETFs in the United States, led by BlackRock’s IBIT, reached 827 million dollars in a single day, according to data from CoinGlass.
This increase in inflows indicates that not only is trading experiencing strong growth, but investor confidence in Bitcoin is also increasing.
Although higher trading volumes indicate good liquidity and intense activity, they do not always reflect new capital entering the funds.
In fact, since the beginning of October, BlackRock’s ETF has recorded a continuous positive flow for 12 consecutive days, with total inflows of about 3.20 billion dollars.
This data suggests a constant interest in the asset and an increase in demand from institutional investors. They are eager to take advantage of the potential opportunities for returns offered by the cryptocurrency market.
However, the exceptional volumes have also raised some concerns. Some analysts fear that a too rapid increase in speculative positions could lead to a quick correction in the price of Bitcoin.
Especially if the value were to reach new highs without stable support from real demand.
As highlighted by Balchunas, in the coming days it will be possible to better understand if this growth in volumes is driven mainly by speculative investors or if it represents a new phase of accumulation by institutional investors.
Bitcoin a un passo dal massimo storico
In recent months, Bitcoin has continued to strengthen, especially after the so-called “halving” in April, an event that halves the number of new Bitcoin produced, thus reducing the supply.
Since then, the price has consolidated between 54,147 and 69,500 dollars, creating a solid base for a possible recovery.
On October 29, Bitcoin surpassed $70,000 for the first time since last June, marking a price level that traders closely monitor as an indicator of a potential bull run to all-time highs.
The cryptocurrency analyst Matthew Hyland noted that on October 29, Bitcoin recorded the “second highest daily candle in history.” A performance that is strengthening optimism in the market and interest in Bitcoin ETFs.
This growth in price and volume seems to be a combination of demand from institutional investors, new capital inflows, and a general enthusiasm for the market.
In the meantime, more and more signals of potential bull in the short term are being observed.
The Bitcoin ETF by BlackRock and other similar funds represent a strategic opportunity for both institutional and retail investors to gain exposure to Bitcoin without having to purchase the cryptocurrency directly.
ETFs, in fact, offer greater ease of management and can be included in traditional portfolios, making Bitcoin accessible to a wider audience of investors.
The growing confidence in Bitcoin ETFs and the recent trading volume data suggest that the interest in this instrument continues to increase. Fueled consequently by the expectations of interesting returns.
However, the risk of volatility remains a central aspect, as cryptocurrencies are notoriously subject to significant price swings.
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