Welcome to the Extreme Investor Network, where we provide you with unique insights and analysis on the Stock Market, trading, and all things Wall Street. Today, we take a look at the recent surge in demand for BTC-spot ETFs, particularly IBIT, fueled by the news of the BlackRock amendment filing with the SEC.
Before the filing, IBIT had seen net inflows of $6.7 million from September 2 to September 20. However, in the week ending September 27, IBIT recorded net inflows of a staggering $499 million, indicating a significant increase in demand for BTC-spot ETFs.
The surge in demand can be attributed to bets on a US Soft Landing and speculation of a 50-basis point Fed rate cut in November. Recent US economic indicators hint at a soft US economic landing, while softer inflation figures have raised expectations of a possible rate cut by the Fed. This has driven buyer demand for riskier assets, supporting the BTC return to $65,000.
Looking ahead, upcoming US economic data, US BTC-spot ETF flows, and Mt. Gox transfers are likely to impact buyer demand for BTC and the broader market. With Fed Chair Powell set to speak on September 30, investors should stay alert for insights into the Fed’s interest rate plans.
Technical analysis shows that BTC is comfortably above the 50-day and 200-day EMAs, signaling bullish price movements. A potential move towards $67,500 and beyond is possible, but investors should keep an eye on key support and resistance levels, as well as market flows.
At Extreme Investor Network, we keep you updated with the latest news and analysis to help you manage your BTC and crypto exposures effectively. Stay tuned for more insights and stay ahead in the ever-changing world of trading and investing.