BlackRock's Bitcoin ETF Sees 217.26M Inflow, Institutional Interest Surges

BlackRock's iShares Bitcoin Trust (IBIT) has seen a significant resurgence in inflows, with the ETF recording its highest single-day inflow in six weeks. On Tuesday, IBIT attracted 2,660 Bitcoins, valued at approximately $217.26 million. This influx marks a notable shift from the previous weeks of consecutive outflows, indicating a renewed interest from institutional investors in Bitcoin.

The substantial inflow into IBIT underscores the growing institutional demand for Bitcoin. Despite recent market volatility, long-term holders have continued to accumulate Bitcoin, with data showing that this cohort has added 167,000 BTC, valued at nearly $14 billion, in the past month. This accumulation suggests a strong belief in Bitcoin's long-term potential, even amidst short-term price fluctuations.

MicroStrategy, now operating under the name Strategy, has also announced plans to raise $500 million for additional Bitcoin purchases. The company intends to issue 5 million shares of its 10.00% Series A Perpetual Strife Preferred Stock, with each share set at a stated value of $100. This move further highlights the increasing institutional interest in Bitcoin as a store of value.

Despite the positive inflows into IBIT, the Bitcoin price has been fluctuating around $83,000. Analysts have noted that Bitcoin faces resistance at the 200-day Simple Moving Average (SMA) around $84,000 and the 50-day SMA at $91,000. If Bitcoin fails to hold above $80,000, there is a risk of further price declines to $75,000 or lower. The upcoming Federal Reserve interest rate decision is expected to play a crucial role in determining the short-term direction of Bitcoin's price.

In summary, the recent inflows into BlackRock's Bitcoin ETF signal a resurgence in institutional interest in Bitcoin. However, the price of Bitcoin remains volatile, with key resistance levels and external factors such as the Federal Reserve's interest rate decision influencing its short-term trajectory. The long-term outlook for Bitcoin remains positive, with continued accumulation by long-term holders and increasing institutional investment.