Bitcoin spot ETFs have racked up $6 billion in net inflows since late September, with BlackRock leading the inflows.
The bullish October, known in the jargon as “Uptober”helps support the cryptocurrencieswhich resist after the correction of the last wheels. Bitcoin (BTC) remains in US$123,000although he touched the US$124,000 in the last 24 hours. Ethereum (ETH)meanwhile, lost 2.5%, and operates below US$4,400.
In the rest of the altcoins, a mixed outlook. Binance Coin (BNB) maintains its position as the third cryptocurrency in the market and continues to rise, while XRP retreats. Other digital currencies also fall, such as Solana (-0.9%), Dogecoin (-0.3%), Tron (0%), Cardano (-0.8%) and Chainlink (-1%).
Bitcoin miners soar due to AI
Shares of BTC mining companies led the sector’s gains. Cipher Mining and Bitfarms soared more than 10%while CleanSpark and Hut 8 climbed around 6%.
According to analysts, these papers benefited from the optimism surrounding artificial intelligence (AI)which requires large computing power similar to that used to mine cryptocurrencies.
The key role of institutional investors
The experts of glassnode They highlight that the good moment of cryptocurrencies is explained by institutional capital. According to data from Farside Investorsnearly US$6,000 million net funds entered cash BTC exchange-traded funds (ETFs) since last September 29.
This week alone, these products captured more than US$2,000 millionwith the IBIT of BlackRock leading the innings. These flows explain from glassnodereversed the slight outflows observed in September and helped absorb a large part of the supply available in the exchanges.
Besides, These strategists believe that institutional investors will continue to favor the rise of bitcoinas the fourth quarter is not only a historically positive period for the leading cryptocurrency, but also the time of year when portfolios rebalance towards higher risk assets.
The Fed and the US government shutdown in the spotlight
Investors remain attentive to “shutdown” of the government in the United States, which accumulates its eighth consecutive day. Although there is no news on the matter, which puts at risk the publication next week of inflation data, there are macroeconomic clues to analyze.
In particular, the minutes of the last Federal Reserve (Fed) meeting, which showed a majority in favor of more interest rate cuts this year. The central bank projects two reductions of 25 additional basis points in October and Decembera scenario that the market practically takes for granted, especially if the closure extends and complicates both the country’s economic situation and its visibility.
Source: Ambito
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