Bitcoin price may be on the cusp of a strong bullish breakout after forming highly bullish chart pattern, and as its exchange-traded fund (ETF) inflows gained steam. The BTC token was trading at $118,435, lower than the all-time high of $123,200.
Data compiled by SoSoValue shows that spot Bitcoin ETFs continue to gain steam this month. The funds have added over $5.78 billion this month so far, much higher than the $4.69 billion it added in June. It was the highest inflows compared to the $5.2 billion it added in May.
Spot Bitcoin ETFs have added assets in the past four consecutive months, bringing the total assets under management to over $152 billion, which is notable for an asset launched 16 years ago.
A closer look at the top Bitcoin ETFs shows that the trend is being driven by BlackRock’s iShares Bitcoin Trust (IBIT), which has had cumulative inflows of over $54 billion. It was followed by Fidelity’s FBTC, which added over $24 billion, and Ark Invest’s ARKB, which had over $5.9 billion in assets.
BlackRock’s IBIT fund is notable because it has now become on of the most profitable ETFs in the industry because of its assets.
Further, Bitcoin demand is being driven by treasury companies that have continued to accumulate the coin. There were 50 treasury companies earlier this month, a figure that has grown to over 60 today.
Another demand-related data is that miner sales have surged in the past few weeks. Data show that outflows from miners jumped to 16k since April this year, with nearly all of them going to exchanges.
Still, data shows that Bitcoin supply in exchanges continue going down as most investors are no longer selling as demand rises. As a result, the divergence between Bitcoin demand and supply points to higher prices in the longer term.
The other notable Bitcoin price catalyst is that Donald Trump and Christopher Waller, a Fed Chair, continues to push for interest rate cuts. In a statement, Christopher Waller said that:
“With inflation near target and the upside risks to inflation limited, we should not wait until the labor market deteriorates before we cut the policy rate. I believe it makes sense to cut the FOMC’s policy rate by 25 basis points two weeks from now.”
Bitcoin price technical analysis
The daily chart shows that the Bitcoin price made a strong bullish breakout on July 10 this year. It has now made a strong bullish pennant pattern, one of the best continuation signs.
Bitcoin price has remained above the 50-day and 200-day moving averages, a sign that bulls are in control. Therefore, the most likely scenario for the token is bullish, with the next point to watch being the all-time high of $123,200. A move above that level will signal more gains to $125,000.
Read more: Bitcoin price prediction: BTC path to $300,000 revealed
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