TL;DR
- The United States is regaining its lead in Bitcoin holdings, driven by demand for ETFs.
- BlackRock has recorded the largest monthly inflow into its BTC ETF at $184.4 million.
- Bitcoin continues to show resilience in the market, while altcoins suffer further declines.
Bitcoin holdings in the United States have been on the rise, primarily due to the growing demand for Bitcoin (BTC) exchange-traded funds (ETFs).
According to Ki Young Ju, founder of CryptoQuant, the country is regaining its dominance in terms of Bitcoin holdings, compared to other nations.
The 🇺🇸U.S. is regaining dominance in #Bitcoin holdings. Its ratio compared to other countries is rising, driven by spot ETF demand. Only known entities are included. pic.twitter.com/a9XOb5134E
— Ki Young Ju (@ki_young_ju) September 26, 2024
This growth has been driven primarily by demand for Bitcoin spot ETFs, which have gained popularity over the past year.
However, despite the increase in reserves, the level of holdings recorded during Bitcoin’s peak in March 2024 has not yet been reached.
As for Bitcoin ETFs, BlackRock has been the biggest beneficiary, recording its largest monthly inflow with an inflow of $184.4 million.
Unlike BlackRock, other ETFs such as those from Fidelity and Ark have seen significant outflows, losing $33.2 million and $47.4 million, respectively.
Additionally, a small positive flow of $2.1 million was recorded by Bitwise, while Grayscale funds did not show any significant movements.
Preliminary data as of September 25 indicates that Bitcoin spot ETFs have accumulated a total of $18 billion since their launch in January of this year.
Despite rumors of a slowdown in the flow of these financial products, ETF Store president Nate Geraci commented that this could be a misperception.
According to him, this situation reflects a context in which some investors expect large weekly gains and react negatively to any pause or stability in market movements.
Bitcoin Market Outlook
In the realm of technical analysis, veteran trader Peter Brandt has noted that Bitcoin continues within a trend of lower highs and lower lows.
To reverse this sequence, the asset would need to surpass the highs recorded in July, which were around $70,000.
At the time of writing, the price of Bitcoin was at $63,520, registering a 1.1% drop on the day.
Throughout the week, Bitcoin has faced resistance at the $64,500 level, being rejected on several occasions.
However, support at $62,850 has proven to be solid as the asset has bounced off that level on more than one occasion.
The broader cryptocurrency market has also shown signs of weakness, with total capitalization down 2.1% over the past 24 hours.
This indicates that altcoins have underperformed BTCÂ over this period, reflecting increased volatility and difficulty in regaining ground against the leading asset.
As interest in Bitcoin spot ETFs continues to grow, it remains to be seen whether these products will be a catalyst for further institutional adoption or whether the market will face further challenges as it attempts to break current resistances.
