Bitcoin has experienced a notable surge, climbing 2.9% in the past 24 hours to reach a high of $71,166 on Binance today, marking its highest price since May 21. This rally seems to be fueled by robust inflows into US spot Bitcoin ETFs, with the sector witnessing its 16th consecutive day of net inflows.
Yesterday alone, these ETFs recorded an inflow of $886.6 million, setting a new record for the fund, with Fidelity leading at $378.7 million. BlackRock closely followed with significant inflows totaling $274.4 million. Other notable contributions came from Ark, Bitwise, and the Grayscale Bitcoin and VanEck Bitcoin Trust.
The sustained interest in Bitcoin ETFs is further illustrated as BlackRock’s iShares Bitcoin ETF surpassed $20 billion in assets, making it the fastest ETF to reach this milestone, reflecting significant momentum and investor enthusiasm.
However, despite the positive inflow dynamics, there are observations that the price surge could have been more pronounced. Analysts note the presence of substantial passive supply on spot exchanges, which may have tempered the price increase.
Moreover, the price increase was not driven by the liquidation of short positions in the BTC futures market, with only $27.58 million in shorts liquidated in the last 24 hours, according to Coinglass data.
Renowned on-chain analyst Willy Woo warned that a continued rise could trigger a significant short squeeze, with $1.5 billion of short positions ready to be liquidated all the way up to $75,000 and a new all-time high.
