- The surge in volume made IBIT one of the most sought-after ETFs in the US
- Bitcoin’s price crossed $44,000 and could rise further.
February 7 was a big day for BlackRock’s Bitcoin [BTC] ETF as daily trading volume exceeded $1 billion.
According to Bloomberg Intelligence analyst James Seyffart, IBIT, the ETF’s ticker, had much more volume than its peers, including Bitwise and Fidelity, among others.
Big volume day for $IBIT. Total volume over $1 billion for the group. https://t.co/Fv8G4P7cvb pic.twitter.com/EGzt431oOr
— James Seyffart (@JSeyff) February 7, 2024
Outsiders want all the fame of Bitcoin
The increase suggests that interest in Bitcoin ETFs has continued to increase since their launch. But as far as price action goes, the increase isn’t that big of a deal.
This was because the increase in volume is not evidence that demand for Bitcoin exceeds supply, which seemed to be the most important metric to pay attention to.
Despite the lack of effect on Bitcoin’s price, BlackRock appeared to lead the adoption of all Bitcoin ETFs. This was clearly visible in IBIT’s position out of all ETFs issued in the US
On February 6, Eric Balcuhnas reported that IBIT had seen more inflows than 99.98% of US-issued ETFs. Balcuhnas is another senior analyst at Bloomberg.
Also $IBIT now in the Top 5 YTD flows, meaning it is seeing more cash withdrawals than 99.98% of ETFs. Not bad for 17 days old. pic.twitter.com/ehAsZWRoqK
— Eric Balchunas (@EricBalchunas) February 6, 2024
Therefore, AMBCrypto can confirm that BlackRock was well ahead of all approved Bitcoin ETFs. In other developments, Bitcoin’s price touched $44,000 on the same day IBIT’s volume reached $1 billion.
BTC Climbs, Could Do More
Press time data showed BTC changing hands higher at $44,665. This jump represents a 3.96% increase over the past 24 hours.
However, signals from the technical outlook showed that the price could move higher. One reason for this projection could be related to the position of the Exponential Moving Average (EMA).
At the time of writing, the 50 EMA (blue) had crossed the 200 EMA (yellow) on the daily chart. Furthermore, Bitcoin’s price had broken above both levels.
Should this position remain the same, BTC could potentially rise above $50,000. However, the projection could coincide with a post-halving rally.
That’s not to say Bitcoin wouldn’t rise past the $44,000 region before the halving. For example, the Accumulation/Distribution (A/D) indicator showed that the coin’s accumulation has been intense in recent days.
If distribution doesn’t take over, Bitcoin’s price could surpass $47,000 in the near term.
Source: TradingView
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Moreover, indications from the Money Flow Index (MFI) supported the projection. At the time of writing, the MFI value had risen to 76.24. The jump indicates an increase in capital flow, which could be a harbinger of a price increase.
If liquidity continues to flow into both the ETFs and the Bitcoin spot market, then a climb to $47,000 is a key level at which the coin could reach next.