Bitcoin (BTC) has surged by 5.7% over the last two days, reaching $72,100, marking its highest point since June 2024. This notable increase is fueled by several critical factors. Firstly, Spot Bitcoin ETFs have seen a substantial net inflow of $479.4 million on October 28, reflecting strong institutional demand.
Notably, BlackRock's iShares Bitcoin Trust (IBIT) led these inflows with $300 million, followed by ARK Invest’s ARKB with $59.8 million. CryptoQuant data reveals an average daily inflow of $257 million over the past month, supporting BTC’s rise above $70,000. Secondly, U.S. Bitcoin ETF holdings have reached an all-time high of $66 billion.
Charles Edwards from Capriole Fund highlighted this remarkable figure, demonstrating the growing interest from institutional investors. Thirdly, the open interest in Bitcoin futures has experienced a notable increase, rising by $2 billion on October 28 and reaching a peak of $22.77 billion. This surge indicates heightened trading activity, contributing significantly to BTC's price momentum. Furthermore, as BTC crossed the $70,000 threshold, over $150 million in leveraged short positions were liquidated.
This large-scale liquidation has created additional buying pressure, propelling Bitcoin’s price upward to $71,800. Lastly, technical analysis suggests critical levels to monitor for a continued rally. Peter Brandt noted that BTC needs to close above $76,000 for a confirmed breakout, with current resistance around $71,500.
This level has been tested repeatedly in early 2024, and a successful close above it could bolster bullish sentiment. In summary, strong institutional inflows, record ETF holdings, and increased futures activity collectively drive Bitcoin’s recent rally, with watches on the potential breakout contingent upon further technical validation above $71,500 and $76,000..