Bitcoin BTC/USD and Ethereum ETH/USD spot ETFs recorded significant inflows on Dec. 16, signaling strong institutional interest amid a bullish outlook for the crypto market.
What Happened: The total net inflow for Bitcoin spot ETFs reached $637 million, marking 13 consecutive days of positive inflows, according to data from SoSo Value.
BlackRock's IBIT Bitcoin ETF led the day with $418 million in net inflows.
Ethereum spot ETFs saw inflows of $51.1 million, continuing a 16-day streak, with BlackRock's ETHA ETF contributing $30.7 million.
Experts believe this trend reflects growing confidence in digital assets.
Speaking with Benzinga, Avinash Shekhar, co-founder and CEO of Pi42 said Bitcoin’s rise to its new all-time high this Monday of $107,700 is a significant moment for the crypto market, shaped by institutional adoption, record ETF inflows, and speculations about the formation of a U.S. Bitcoin strategic reserve.
He added that the market is further buoyed by anticipation of a Federal Reserve rate cut, which signals positive sentiment for risk assets.
Shekhar also pointed out historical patterns, suggesting that altcoins could follow Bitcoin's lead.
"While Bitcoin is now leading with strong fundamentals, historical trends indicate that altcoins, such as Ethereum and Solana, will likely follow suit," he said.
Ethereum's rally past the $4,000 mark highlights renewed institutional interest, driven by on-chain activity and its dominance in decentralized finance (DeFi).
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Why It Matters: Technical analysis from Fairlead Strategies supports the bullish market outlook.
Bitcoin has exhibited short-term, intermediate-term and long-term bullish momentum, with a measured move projection targeting $124,000 in the intermediate term.
In a note sent to Benzinga, analysts observed that Bitcoin has broken out of its consolidation phase, signaling strong upward momentum through year-end.
Ethereum also remains bullish across all time frames, according to Fairlead Strategies.
Ether has pushed back above key resistance near $4,000, and a sustained breakout could target $4,866 in the intermediate term.
Indicators like the MACD and stochastics suggest that Ethereum's upward momentum is likely to continue, strengthening the case for long-term upside.
The broader market momentum has sparked discussions of an upcoming altcoin season, with several altcoins, including Polkadot DOT/USD, and Ripple XRP/USD, showing bullish relative strength compared to Bitcoin.
Meanwhile, analysts noted that assets like Dogecoin DOGE/USD and Stellar XLM/USD may be losing their upside leadership.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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