The US Spot Bitcoin ETF has regained momentum, as evidenced by the recent fund flow data into the investment instrument. This also indicates that institutional interest in Bitcoin USD has caught the eyes of traders. What has further ignited optimism is that there was no outflow on October 21. Even BlackRock’s IBIT, which had continued its outflow streak for the last five days, recorded an inflow in the prior session. Meanwhile, this comes as the gold price continues to slip, which has further boosted market sentiment. A flurry of market experts believe that the recent decline in the precious metal’s value hints at a shifting market focus towards digital assets. Having said that, market watchers are anticipating a strong recovery in BTC price. However, it’s worth noting that analysts have highlighted key Bitcoin price levels to watch ahead, which might determine the upcoming momentum of the flagship crypto.
Bitcoin ETF Inflow Hints at BTC Price Recovery
BTC price has recorded a massive recovery recently, sparking market optimism, but it appears that the momentum was short-lived. After touching a 24-hour high of $114k, Bitcoin USD retreated again to the $108k level today, during writing. However, its trading volume soared significantly by over 65% to $104 billion, suggesting a renewed trading activity in the market. Despite that, the crypto has lost more than 3% in the weekly chart, while losing about 4% over the last 30 days.
Meanwhile, the recent market trends have boosted market sentiment. For context, the US Spot Bitcoin ETF flipped its fund flow trend on October 21, after witnessing robust outflow over the past few days. According to Farside Investors’ data, the investment instrument has recorded an inflow of $477.2 million on Tuesday. This inflow follows an outflow streak for the last four days through October 20. Notably, BlackRock’s IBIT has led the fund flow on Tuesday, witnessing an inflow of $210.9 million. ARK Invest’s ARKB also recorded an influx of $162.9 million.
Gold Price Dips: Impact on Bitcoin USD
Gold price has continued its slump for the second straight day, falling more than 1.4% today to $4,063. This has also lifted market sentiment alongside Bitcoin ETF inflow, indicating a shifting investors’ focus amid ongoing market uncertainties. The Kobeissi Letter has highlighted the trend, saying that “Gold extends two-day losses to -8%, erasing over -$2.5 trillion worth of market cap.” This also marks the largest two-day drop for the asset since 2013, especially after the Bullion hit a record high recently.
Analyst Michael van de Poppe also lauded the dip in gold price. He noted that if Bitcoin USD breaks through $112k, it could target a new all-time high, potentially triggering a rally in altcoins. Poppe noted, “The volatility on Gold is super high, that’s due to the fact that it’s a massive outlier which we’ve witnessed in recent months.” Besides, he believes that the gold price has already peaked for the moment, indicating that money would be rotated towards other risk-bet assets. Having said that, it appears that market participants are anticipating the fund to divert towards Bitcoin and digital assets. This, if it happens, could provide massive support in BTC price recovery.
BTC Price Levels to Watch Ahead
As institutions regain their confidence, as evidenced by the recent Bitcoin ETF inflow data, analysts have shared key insights on the flagship crypto. In a recent X post, analyst Ted said that the $107k to $108k support marks a vital region for BTC price. According to him, if the support sustains, Bitcoin USD could witness a robust recovery, potentially targeting a new all-time high.
On the flip side, failure to hold the support could trigger another selloff in the Bitcoin market. He believes that such a scenario could ignite a BTC crash to $100,000. In addition, he noted that $12 billion in shorts will be liquidated if Bitcoin pumps 10%. On the flipside, $6.98 billion in longs are expected to be liquidated in a bearish scenario of a 10% dump.
Considering that, investors should tread cautiously while putting their bets amid the volatile scenario in the market.