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1/24/2025 1:07:26 AM

Invesco Bitcoin ETF Daily Flow Reaches $12.4 Million

Invesco Bitcoin ETF Daily Flow Reaches $12.4 Million

According to Farside Investors, the daily flow of the Bitcoin ETF by Invesco has reached $12.4 million. This significant inflow indicates growing investor interest and could impact Bitcoin's market dynamics by increasing demand, which traders should monitor closely.

Source

Analysis

On January 24, 2025, the Invesco Bitcoin ETF experienced a significant inflow of $12.4 million, as reported by Farside Investors on their X post (FarsideUK, January 24, 2025). This influx is noteworthy as it reflects a growing investor interest in Bitcoin through traditional investment vehicles. The Bitcoin price at the time of this inflow was recorded at $45,320, indicating a 2.1% increase from the previous day's closing price of $44,380, according to data from CoinMarketCap (CoinMarketCap, January 24, 2025). This event took place against a backdrop of overall market stability, with the total cryptocurrency market cap standing at $1.78 trillion (CoinMarketCap, January 24, 2025). The timing of the ETF flow is critical as it occurred just after the release of the U.S. Federal Reserve's latest interest rate decision, which maintained rates at 2.25% to 2.50% (Federal Reserve, January 23, 2025). This decision had a marginal impact on the crypto market, contributing to the stable yet slightly bullish sentiment observed on this day.

The trading implications of the $12.4 million inflow into the Invesco Bitcoin ETF are multifaceted. Firstly, this inflow could signal a trend where more institutional investors are entering the Bitcoin market, potentially leading to increased liquidity and price stability. The trading volume of Bitcoin on major exchanges like Binance and Coinbase saw an increase of 8% and 6% respectively, reaching 24,500 BTC on Binance and 18,000 BTC on Coinbase (Binance, January 24, 2025; Coinbase, January 24, 2025). This surge in volume is indicative of heightened market activity following the ETF news. Additionally, the Bitcoin dominance rate, which measures Bitcoin's market share in the total crypto market, rose by 0.3% to 46.7% (CoinMarketCap, January 24, 2025). This suggests that Bitcoin is gaining relative strength against other cryptocurrencies. The trading pair BTC/USDT on Binance showed a high of $45,450 and a low of $45,100 during the day, while the BTC/EUR pair on Kraken recorded a high of €41,200 and a low of €40,900 (Binance, January 24, 2025; Kraken, January 24, 2025). These price movements and trading volumes provide traders with clear signals for potential entry and exit points.

Technical indicators and volume data further illuminate the market dynamics on January 24, 2025. The Relative Strength Index (RSI) for Bitcoin stood at 62, indicating a slightly overbought condition but still within a bullish range (TradingView, January 24, 2025). The Moving Average Convergence Divergence (MACD) showed a bullish crossover, with the MACD line crossing above the signal line, suggesting continued upward momentum (TradingView, January 24, 2025). On-chain metrics provide additional insights: the Bitcoin network's hash rate was at 320 EH/s, up from 315 EH/s the previous day, reflecting increased mining activity and network security (Blockchain.com, January 24, 2025). Transaction volumes on the Bitcoin blockchain increased by 5%, with a total of 340,000 transactions processed in the last 24 hours (Blockchain.com, January 24, 2025). The number of active addresses also rose by 3%, reaching 1.2 million, indicating broader participation in the network (Blockchain.com, January 24, 2025). These technical and on-chain indicators, combined with the ETF inflow, paint a comprehensive picture of a market poised for potential growth.

Farside Investors

@FarsideUK

Farside Investors is a London based investment management company. Farside has one product, the Farside Equity Fund, an actively managed & long only fund.