Bitcoin Drops Below $82K Despite $1B in ETF Inflows
Bitcoin slipped below $82,000 on Oct. 22, unable to hold a recovery above $84,000, even as U.S. spot exchange-traded funds drew roughly $1.08 billion over the three sessions ending Oct. 21, according to SoSoValue data.
ETF demand picked up sharply this week. The funds added $528 million on Wednesday, the strongest single-day intake in more than a month, led by BlackRock’s IBIT, Fidelity’s FBTC, Grayscale’s GBTC and Bitwise’s BITB. Tuesday brought $23 million, after $526 million on Monday. October flows have swung from negative to positive $460 million, putting the funds on track for a fourth straight positive month following $2.65 billion in September and $3.52 billion in August.
The buying followed a bullish long-term call from JPMorgan Asset Management. Analysts at the bank expect Bitcoin to outperform stocks, bonds and even gold over the long run, with annualized growth of about 10%, while warning that volatility may deter some investors from the asset.
Strive is adding to the bid after building a position of 36,818 coins, making it one of the largest holders. The company raised more than $600 million this week through the IPO of SATS to fund further purchases.
Sentiment turned risk-on after a strong SpaceX earnings report. The company said revenue more than doubled last quarter and that it swung to a profit, and it raised the possibility of a merger with Tesla, a notable prospect given the two companies hold more than 30.2k Bitcoins between them. The Dow Jones, Nasdaq 100 and S&P 500 extended their rally as bond yields and crude prices eased.
That backdrop is now reversing. Futures tied to the Dow Jones are down 225 points and S&P 500 futures are off 60 points, while Brent has climbed to $111.60 and West Texas Intermediate to $100. Sustained strength in oil would keep ETF inflows under pressure.
On the daily chart, Bitcoin has spent the month in a tight range and has broken above the upper boundary of a falling wedge formed by two descending, converging trendlines, a pattern that typically resolves in a strong bullish breakout. The price holds above its 50-day and 100-day moving averages and above the Supertrend indicator, both bullish signals. A breakout would bring $87,254 into focus, with a move through that level opening the way to $90,000 and then $100,000.
This article is for informational purposes only and does not constitute financial advice. Bitcoin prices are volatile and investors can lose capital. Readers should conduct independent research before making investment decisions.
