The digital assets investment products, led by BlackRock’s IBIT and ARK 21Shares Bitcoin ETF (ARKB), registered a net cash outflow of $305 million last week. Widespread fear of further crypto capitulation in September has pushed more investors to take some profits and shield their capital.
BlackRock’s IBIT Outflow Chart
BlackRock’s iShares Bitcoin Trust (IBIT) has experienced low investor demand in recent years. On August 29, IBIT reported a net cash outflow of about $13.5 million, the second since its $36.9 million outflow on May 1, 2024. Nonetheless, BlackRock’s IBIT has grown impressively since its inception to a net cumulative cash inflow of about $20.92 billion.
Market Situation
Despite the heightened fear of further crypto correction in September, on-chain data shows more than 40k BTCs were withdrawn from different exchanges in the past few days. The anticipated bullish recovery in the fourth quarter and the first half of next year has influenced more long-term investors, led by MicroStrategy and El Salvador, to accumulate more units.
Technical Analysis and Outlook
From a technical standpoint, Bitcoin price has been forming a potential bullish flag in the past few months, often followed by a robust uptrend momentum. The anticipated recovery in the fourth quarter and the first half of next year may push Bitcoin prices to new highs.
While the cryptocurrency market remains volatile and prone to short-term changes, long-term forecasts and technical analysis point to a potential recovery in the value of major digital assets. Large investors continue to build up their holdings, anticipating a favorable period for the cryptocurrency market.
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