BlackRock Bitcoin ETF (IBIT) Continues to Hit New Milestones, Scooping 3,450 BTC

BlackRock iShares Bitcoin Trust (IBIT) has recorded inflows for 19 consecutive trading sessions since mid-April, while driving a majority of the inflows in this space.

Reports from Ecoinometrics highlight that Bitcoin (BTC) ETF flows are nearing a critical level that could significantly impact the cryptocurrency's price.

The report noted that rolling 30-day inflows are just 10,000 BTC below the 60,000 BTC threshold. This model, which tracks the ratio of ETF flows to Bitcoin's price, has consistently signaled substantial price appreciation for the cryptocurrency.

"When the 30-day average of ETF flows exceeds 60,000 BTC, we typically see 30-40% price appreciation in the following 3-4 months," Ecoinometrics stated.

The past year has seen a clear correlation between Bitcoin ETF flows and the cryptocurrency's price movements. As seen in the chart, Bitcoin's price, which has fluctuated between $60,000 and $100,000, responds positively when inflows cross above the 60,000 BTC threshold.

The data shows that whenever the 30-day average of Bitcoin ETF outflows exceeds 60,000 BTC, the cryptocurrency's price tends to rise sharply.

However, it's worth noting that the model did not accurately predict the steep price decline observed earlier this year. This suggests that while ETF flows are a crucial factor, other market forces can also significantly influence Bitcoin's price movements.

"It's important to note that this model did not correctly predict the -90% price decline that occurred earlier this year. This highlights that while ETF flows are a major driver of price trends, other market forces can exert significant influence, especially during periods of extreme volatility," Ecoinometrics added.

The Bitcoin ETF product from BlackRock (NYSE:BLK) has been a primary contributor to these substantial inflows. In the past 19 days, the iShares Bitcoin Trust (IBIT) has recorded inflows in 18 out of 19 trading sessions, collecting more than $44.7 billion since its inception and amassing over 625,000 Bitcoin in its treasury.

On Friday, IBIT contributed to a total of $356 million in Bitcoin ETF inflows, while the remaining $321 million came from other Bitcoin ETFs.

As BTC aims for fresh all-time highs after a breakout above $103K, IBIT contributed with $356 million inflow yesterday, taking the total inflows to more than $44.7 billion since inception, and holds a total of 625,000 Bitcoin in its treasury.

The post Bitcoin ETF Inflows Nearing Critical Growth Level As BTC Aims For Fresh ATHs appeared first on Benzinga.

This article is written by Benzinga and has been edited and adapted by Tech Monitor.