Investor confidence in Bitcoin (BTC) is on the rise due to increased inflows into spot BTC exchange-traded funds (ETFs) and favorable trading conditions. Researchers at Bitfinex have determined that Bitcoin has hit a bottom price of around $60,000 based on their analysis of the weekly market conditions. The recent Bitfinex Alpha report identified three key factors that support this belief: consistent high daily closes, significant BTC outflows from crypto exchanges, and inflows into the spot Bitcoin ETF market.
According to data from CryptoQuant via Bitfinex, approximately 55,000 BTC were withdrawn from exchanges on May 15, but this did not negatively impact Bitcoin’s low volatility. Despite the large outflows, Bitcoin continued to trade above $61,000, with outflows totaling $3.85 billion last week. Typically, large outflows from exchanges indicate negative market sentiment, but Bitcoin remained resilient.
In the United States, the spot Bitcoin ETF market has seen seven consecutive days of net positive inflows. The Grayscale Bitcoin Trust (GBTC) has historically been responsible for most of the outflows, losing over $17.6 billion to date. However, in six out of the past seven days, GBTC recorded net positive inflows. The Bitfinex report discovered that ETF buyers currently have a similar cost basis of around $62,000, excluding GBTC.
Investors who prefer diversifying their portfolios at a lower cost and with tax benefits often opt for ETFs. As a result, BlackRock’s iShares Bitcoin Trust (IBIT) has attracted nearly $16 billion in investments and is currently the top-performing Bitcoin ETF among the ten approved ones. JPMorgan Chase has also disclosed investments in Bitcoin ETFs offered by Grayscale, ProShares, Bitwise, BlackRock, and Fidelity.
In a filing with the U.S. Securities and Exchange Commission (SEC) on May 10, JPMorgan Chase revealed holdings of approximately $760,000 worth of shares in various Bitcoin ETFs. However, the SEC cautioned that this information should not be assumed to be accurate and complete.
In other news, there is a documentary about the FTX collapse titled “The $2,500 doco about FTX collapse on Amazon Prime,” which received assistance from the filmmaker’s mother.