Bitcoin spot ETFs saw significant fund inflows on Monday, with over $556 million being poured in, the largest since the first week of June.
Fidelity’s ETF (FBTC) led the inflows with $239 million, while Bitwise’s ETF (BITB) contributed $100 million. Additionally, Ethereum spot ETFs experienced a net inflow of $17 million, reflecting growing institutional interest in the crypto market, according to data from SoSo Value.
Out of the twelve funds, WisdomTree and Hashdex’s spot bitcoin ETFs had no inflows. However, none of the ETFs experienced outflows.
Bitcoin is currently trading at $65,780 on Tuesday morning European time, up 2.5% for the day after reaching a high of $66,486 earlier in the session. Ethereum also saw a notable increase, trading at $2,620, up 3.5%, according to CoinGecko data.
In the last 24 hours, the crypto market saw liquidations totaling $183 million, with the majority coming from short positions. Data from CoinGlass reveals that $136 million of shorts were liquidated, while $47 million of longs were also affected.
According to CryptoQuant contributor EgyHash, Bitcoin's open interest in the derivatives market has reached a new all-time high of $19.8 billion.
The surge in open interest suggests an influx of liquidity and increased attention in the crypto space, they wrote. Additionally, funding rates have hit their highest positive level since August, indicating that a majority of this open interest is being driven by long positions. That all points to a bullish market sentiment among traders.
Market analysts are closely watching Bitcoin's price movement as it hovers around critical resistance levels, with predictions of further upward momentum if certain conditions are met.
In a note sent to Decrypt, 10x Research wrote that Bitcoin is showing signs of bullish activity. The open interest in Bitcoin options stands at $18.3 billion, which is lower than the $21-22 billion levels seen during Bitcoin’s previous attempts to break its downtrend.
This lower interest signals room for a potential surge, especially as call buying increases. Additionally, BTC's 25-delta skew—a measure of the difference in implied volatility between puts and calls—is decreasing. That indicates stronger interest in bullish call options.
"With Bitcoin recently breaking through the $65,000 resistance level, we could see aggressive traders selling puts to buy calls, positioning for a potential move higher," 10x Research noted.
They further highlighted that traders are employing strategies like selling $60,000 puts and buying $75,000 calls for nearly zero premium, creating upside potential for the November 29, 2024 maturity. Should Bitcoin hold above its seven-month downtrend resistance, experts believe the next target could be $70,000, with the possibility of new all-time highs as the U.S. Presidential election approaches.
A dovish stance from the Federal Reserve last month, alongside rate cuts from other central banks such as the ECB and those in Asia, is expected to provide a positive liquidity boost. These actions are likely to support Bitcoin's price in the near term. "The following 48 hours will be crucial in solidifying Bitcoin's breakout above its resistance. If successful, the next price target of $70,000 seems within reach," analysts from 10x Research explained.
Edited by Stacy Elliott.