Bitcoin Surges $8 Billion, Awaits ETF Boost for Full Recovery

Bitcoin's Onchain Inflows Signal Strong Demand

Despite recent market turbulence, Bitcoin's onchain inflows indicate significant demand, with investors and miners increasing activity. The cryptocurrency's realized cap has increased by over $8 billion, now exceeding $1.1 trillion, as the realized price surpasses $110,000.

Factors Influencing Bitcoin's Market

According to Ki Young Ju, CEO of CryptoQuant, the influx is mainly driven by Bitcoin treasury firms and ETFs. However, Ju notes that Bitcoin's price recovery is contingent on renewed buying from ETFs and MicroStrategy.

"Current demand is primarily from ETFs and MicroStrategy, which have recently slowed their purchases. A recovery in these channels could rejuvenate market momentum," Ju stated.

Bitcoin Mining Expansion

Bitcoin miners are scaling operations, contributing to a rising hashrate—a positive long-term indicator. Notably, large miners like American Bitcoin have expanded their mining fleets significantly.

Prospects for Bitcoin's Price

Despite the $8 billion inflows, investor sentiment remains low following a major market crash. However, analysts at Bitfinex suggest that a resurgence in ETF inflows and potential monetary easing by the Federal Reserve could propel Bitcoin's price to $140,000 in November.

"We anticipate Bitcoin could rise towards $140,000, with ETF inflows potentially reaching $10 to $15 billion," analysts noted, citing potential catalysts such as Federal Reserve actions and seasonal trends.