- Bitcoin ETF volume was $6.94 billion in inflows and volume.
- Retail investors have less exposure to BTC compared to 2021.
Discover Bitcoin [BTC] ETFs saw an explosive spike in daily volume and inflows on February 20, AMBCrypto confirmed.
According to crypto analysis tool Santiment, there was one combined volume of $6.94 billion among seven of the ETFs. This was also the highest daily volume since the SEC approved the ETFs in January.
The search result of the on-chain platform showed that Bitwise [BITB]Fidelity [FBTC]Black rock [IBIT]and Ark21Share [ARKB] were part of the issuer involved in the increase.
Others include Invesco Galaxy [BTCO]van Eck [HODL]and Grayscale [GBTC].
Source: Santiment
A high ETF interest rate is not a sign of a price increase
This increase was a restatement of investors’ increasing exposure to Bitcoin. For example, Eric Balchunas reported how HODL volume rose 14x the usual average.
According to Balchunas, a senior analyst at Bloomberg, the transactions took place between 32,000 individuals.
Although not confirmed, the number of participants suggests that VanECK may have expanded its offering to other platforms.
Source:
Although the high ETF activity shows rising interest, it may not impact BTC’s supply and demand curve. This is because investors do not purchase and store the coin directly.
The price of Bitcoin has therefore not been affected. At the time of writing, BTC changed hands at $51,685.
For Bitcoin’s price to rise, retail demand must be incredibly high. But it seems this has not been the case.
For example, AMBCrypto checked Google Trends facts about the search for the coin. According to the results we got, Bitcoin searches worldwide had a value of 29.
While this was an increase, it didn’t seem like enough to create a big demand for BTC.
The value also shows that BTC was less popular among retail investors compared to its value between January and November 2021.
Source: Google Trends
BTC could slip before it pumps
It is also noteworthy to mention that BTC reached its All-Time High (ATH) during the said period. As such, one can assume that the coin has huge potential to surpass $69,000 this cycle.
If institutions continue to dominate volume in the coming months, it could be difficult for BTC to close at $69,000.
However, an increase in the number of new addresses and purchasing pressure could change the state of affairs.
From a technical perspective, the long-term horizon looks promising for Bitcoin. For example, the 50 EMA (blue) had passed the 200 EMA (yellow). This suggests a bullish bias for the cryptocurrency.
Read Bitcoin’s [BTC] Price forecast 2024-2025
The accumulation/distribution (A/D) was another indicator fueling the forecast. At the time of writing, the A/D was rising, indicating that buying pressure has increased.
Source: TradingView
However, BTC may undergo a distribution period. If this is the case, the price could fall below $51,000. But in a few months, it is likely that the price will reach an astronomical high.