Bitcoin was on a three-day outflow streak before June 3. However, the streak came to an end on Tuesday, as Bitcoin faced inflows to turn the situation around. Data shows that BTC recorded an impressive $375 million in net inflows as institutions loaded up
The recent Bitcoin ETF inflows have stirred optimism for a market recovery despite BTC closing Tuesday’s session on red. But despite the optimism, the Open Interest of BTC is giving cautious vibes
As the price of Bitcoin dropped below $106,000, the confidence of BTC-backed products investors shook up. As a result, Bitcoin recorded outflows since May 29, proceeding till June 2. The BTC spot ETFs outflows were as $346.8 million on May 29, $616.1 million on May 30 and $267.5 million on June 2, as per data by Farside Investors
Bitcoin US Spot ETF Flows | Source: Farside InvestorsHowever, on June 3, Bitcoin spot ETFs recorded a total of $375.1 million inflows, breaking the streak. The inflows shows that investors are regaining confidence despite Bitcoin showing a rather slow price recovery
Out of the net inflows, Ark Invest and 21 Shares’ ETF (ARKB) recorded the largest inflow. In particular, the ARKB received a total of $139.9 million capital inflow. Coming in second was Fidelity Wise Origin Bitcoin Fund (FBTC) with $136.8 million inflows
iShares Bitcoin Trust ETF (IBIT) and Bitwise Bitcoin ETF (BITB) also recorded $58.0 million and $14.5 million inflows, respectively. However, five out of the 11 ETFs recorded nil inflows or outflows
Bitcoin Futures Open Interest Drops
The Open Interest (OI) of Bitcoin futures is down today. As per the data by Coinglass, the open interest in BTC futures has dropped to $70.89 billion on Wednesday. This marks a 3% dip from Tuesday’s value
BTC Futures Open Interest (OI) | Source: CoinglassIn the crypto market, the open interest is used to measure the total number of active positions in specified derivative contracts. This could be futures or options contracts. In our case, the drop in Bitcoin futures OI shows that derivative traders are refraining from the current market probably due to uncertainty
A drop in the OI of Bitcoin futures is thus a clear indication that a bullish breakout could be out of reach in the short term. With derivative traders closing their positions and stepping away from the market, BTC may thus take long to recover recent losses
BTC Consolidates Between $104K and $107K
The price of Bitcoin, the king crypto, has entered into a consolidation phase. As per the daily chart on TradingView, Bitcoin is currently trading at $105,777. The price is thus moving sideways between $104,000 and $107,000. This means that investors are uncertain under the current market conditions
BTC price | Source: TradingViewA breakout above or below the sideways price movement is thus crucial for BTC to define the next trend. If the price experiences a breakout above $107,000, Bitcoin could continue the uptrend potentially surging past the current all-time high resistance at $111,949
However, a drop below $104,000 could trigger a bearish trend. In this case, Bitcoin could drop towards the support at $102,797. A deeper dive would push BTC below $100K to $98,783 which would confirm a bearish trend
While BTC ETF inflows show optimism, derivative traders are cautious. Traders must thus express caution until Bitcoin shows a clear trend from the ongoing consolation
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Bitcoin ETF Inflows Spark Recovery Hopes but Futures Open Interest Suggests Caution
The recent Bitcoin ETF inflows have stirred optimism for a market recovery despite BTC closing Tuesday’s session on red. But despite the optimism, the Open Interest of BTC is giving cautious vibes
BTC Spot ETF Inflow Breaks Three-day Outflow Streak
As the price of Bitcoin dropped below $106,000, the confidence of BTC-backed products investors shook up. As a result, Bitcoin recorded outflows since May 29, proceeding till June 2. The BTC spot ETFs outflows were as $346.8 million on May 29, $616.1 million on May 30 and $267.5 million on June 2, as per data by Farside Investors
Out of the net inflows, Ark Invest and 21 Shares’ ETF (ARKB) recorded the largest inflow. In particular, the ARKB received a total of $139.9 million capital inflow. Coming in second was Fidelity Wise Origin Bitcoin Fund (FBTC) with $136.8 million inflows
iShares Bitcoin Trust ETF (IBIT) and Bitwise Bitcoin ETF (BITB) also recorded $58.0 million and $14.5 million inflows, respectively. However, five out of the 11 ETFs recorded nil inflows or outflows
Bitcoin Futures Open Interest Drops
The Open Interest (OI) of Bitcoin futures is down today. As per the data by Coinglass, the open interest in BTC futures has dropped to $70.89 billion on Wednesday. This marks a 3% dip from Tuesday’s value
A drop in the OI of Bitcoin futures is thus a clear indication that a bullish breakout could be out of reach in the short term. With derivative traders closing their positions and stepping away from the market, BTC may thus take long to recover recent losses
BTC Consolidates Between $104K and $107K
The price of Bitcoin, the king crypto, has entered into a consolidation phase. As per the daily chart on TradingView, Bitcoin is currently trading at $105,777. The price is thus moving sideways between $104,000 and $107,000. This means that investors are uncertain under the current market conditions
However, a drop below $104,000 could trigger a bearish trend. In this case, Bitcoin could drop towards the support at $102,797. A deeper dive would push BTC below $100K to $98,783 which would confirm a bearish trend
While BTC ETF inflows show optimism, derivative traders are cautious. Traders must thus express caution until Bitcoin shows a clear trend from the ongoing consolation