Bitcoin ETF Inflows Hit Record $472M: Crypto Market Rally Ahead?

In the past 30 days, Bitcoin has surged by 8.5%, while Ethereum has seen a slight decline of 1.0%. Since October 15, the Bitcoin Spot ETF market has recorded only one day of negative inflows. Just yesterday, the market experienced a remarkable inflow of $472.60 million. Meanwhile, the 2-year US Treasury Bond Yield, which was around 5.035% in late April, has now decreased to 4.154%.

The rollercoaster ride continues. What is coming next?

Analyzing Market Correlations

Crypto analyst Michael van de Poppe points out a connection between Bitcoin’s market growth and the ongoing positive inflows in the Bitcoin ETF market. He also notes a link between Ethereum’s decline and the drop in US Treasury yields. Let’s explore these trends further!

On October 10, Bitcoin’s price fell to a low of $60,311. Since then, it has risen by 18.23%. This month, the Bitcoin Spot ETF market has shown strong inflows. On October 25, the market saw an inflow of $401.20 million, followed by an even greater inflow of $472.60 million yesterday. Notably, IBIT, one of the leading BTC Spot ETF issuers, has not recorded any outflows since October 15, with a significant inflow of $308.40 million just yesterday.

Altcoin Market Analysis

At the start of this month, the dominance of the cryptos, excluding the top ten, was 10.27. Now, it stands at 9.31%, indicating a 9.34% decline during the period. 

On October 21, the Ethereum market reported a major drop from a monthly peak of $2,747. Currently, with a price of $2,623, the market is struggling to recover from the fall. 

At the start of this month, the 2-year US Treasury Bond Yield was at 3.609%. It peaked at 4.025% on October 9 but then slipped to a new low of 3.939% on October 16. Currently, the bond yield index stands at 4.154%, which is at least 21.25% lower than the yearly yield peak of 5.037%.

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Key Economic Indicators to Watch

Today, the US market is expected to witness two important economic events: the US JOLTs Job Openings and US CB Consumer Confidence. Both these events could influence the market. 

In August the US Job Openings index was 8.04 million – a notable rise compared to July’s 7.71 million. This month, the consensus is that it may reduce to 7.99 million. 

In the previous month, the US CB Consumer Confidence Index was at 98.7, significantly lower than the forecast of 103.9. In contrast, August’s index recorded 105.6, surpassing the forecast of 100.9.

The expert warns that the crucial economic events of the week could spark volatility in the crypto market, particularly in Bitcoin and Ethereum.

Stay tuned to Coinpedia for more updates!