Demand for Bitcoin ETFs continues to grow among U.S. investors, with daily net inflows surpassing $100 million for the second consecutive day, as reported by SoSoValue. This comes as China considers a massive 1 trillion yuan ($142 billion) capital injection into its state banks to stimulate economic growth, following recent monetary easing measures by the People’s Bank of China (PBOC).
The strong inflows into Bitcoin ETFs signal increasing investor confidence, highlighted by a five-day streak of positive net inflows, indicating accumulation rather than selling. During early Asian trading hours on Thursday, Bitcoin (BTC) traded above $63,000, reflecting a 2% gain over the past week, despite a slight daily decline of 1.4%.
Data from CryptoQuant shows a shift in 30-day net holdings to positive for the first time in September, underscoring rising interest in Bitcoin among institutional investors. Meanwhile, China's reported plans to inject up to 1 trillion yuan into its major state banks follow the PBOC’s decision earlier this week to cut the reserve requirement ratio by 50 basis points and reduce the seven-day reverse repo rate by 20 basis points to 1.5%.
These measures are aimed at boosting liquidity and supporting the country’s struggling economy, contributing to a surge in Asian stock markets. Notably, Ethereum (ETH) also saw positive momentum, trading above $2,500 with an 8% weekly increase, despite a slight daily drop of 1.3%. Spot ETH ETFs recorded a daily net inflow of $43 million, continuing a positive trend for the second day.
Rising Ethereum gas fees, driven by increased network activity, have contributed to ETH’s recent outperformance against BTC, especially following the U.S. Federal Reserve’s 50 basis point rate cut, according to insights from Presto Research. Additionally, WorldCoin’s WLD tokens surged by 14%, making it one of the top gainers in the broader crypto market.
This increase followed the project's expansion into new countries, including Poland, Malaysia, and Guatemala, boosting user adoption. Developments at OpenAI, supported by WorldCoin’s co-founder Sam Altman, have also contributed to the token’s rise. WLD tokens have shown a tendency to move in line with news from OpenAI, as traders perceive the two projects as closely interconnected.
As Bitcoin ETF inflows continue to rise and China’s economic stimulus measures boost market sentiment, the crypto market remains poised for further growth in the final quarter of 2024..