Massive Inflows Drive Bitcoin to New Heights

On July 10th, Bitcoin (BTC) witnessed a colossal surge, attracting an astonishing $1.18 billion in daily inflows from U.S. spot ETFs. This marked the second-highest inflow since these financial products launched in January 2024, rapidly pushing the total monthly demand to $2.3 billion.

Traders have speculated aggressively about BTC’s potential rally, with some predicting prices could soar to $120,000 or even $130,000. Despite this optimism, Bitcoin miners began cashing in on the rising prices, selling off their holdings.

Bitcoin's All-Time High Amidst ETF Demand

With this flurry of ETF activity, Bitcoin has reached a staggering new all-time high of $118,000, driven by overwhelming demand from institutional investors and treasury firms.

Analytics firm Ecoinometrics believes that this surge in ETF demand could further propel Bitcoin to around $119,000, based on their proprietary analysis.

BlackRock Dominates ETF Landscape

BlackRock's IBIT ETF led the charge, attracting nearly half of the day's total inflows at $448.5 million, while Fidelity's FBTC added $324.34 million to the mix. On July 10th, trading volume for BlackRock's ETF reached a staggering $5 billion, up from $3.5 billion the previous day. According to Bloomberg ETF analyst Eric Balchunas, these big volume increases often indicate major investments from institutional players.

“When IBIT sees significant volume spikes on positive price days, it often leads to large inflows,” Balchunas noted, hinting at the potential for another billion-dollar flow by the end of the week.

Institutional Predictions and Market Sentiment

As of now, if the subsequent trading session on July 11 also garners $1 billion in ETF inflows, analysts believe Bitcoin could not only hit $120,000 but might even exceed this threshold.

Options market data reveals that bullish bets are heavily concentrated around strike prices of $120K, $125K, and $130K. On the flip side, bearish positions are stacked around $102K and $100K, hinting that institutional investors are betting on at least a floor price of $100K for Bitcoin.

Cautionary Signals from Miners

Despite this buoyant outlook, there’s a potential red flag. CryptoQuant has reported that the recent all-time high is prompting miners to take profits, indicated by a spike in the Miner Position Index (MPI). Currently, the MPI stands at 0.6, but any significant increase could signal a sharper sell-off among miners, reminiscent of patterns observed in previous market peaks.

This evolving scenario makes it crucial for investors to monitor miner activity closely, as it might influence Bitcoin's trajectory in the near future.