Bitcoin Price Recovery Stalls Near $80,000 Amid Strong ETF Inflows and Whale Demand
Bitcoin's price recovery has stalled near $80,000 as ETF inflows continue to mount and whale demand strengthens. On Wednesday, the King Crypto hovered above $78,000 but struggled to advance beyond the crucial milestone of $80,000. This follows a strong weekly rise in Bitcoin's price, which marked its strongest increase in three years.
BlackRock has been at the center of this trend, with its tax-deferred swaps attracting whales and institutional investors alike. Eric Balchunas, Senior ETF Analyst at Bloomberg, notes that BlackRock's $5 billion swap volume is a significant development, making it easier for large investors to exchange their Bitcoin holdings for ETF shares.
The inflows into BTC ETFs have been substantial, with $314 million pouring in on Tuesday alone. This marks the seventh consecutive day of positive inflows, which has driven the total net asset value to $99.05 billion and accounted for 6.31% of Bitcoin's market capitalization.
On-chain data also suggests that whales are accumulating BTC, with a 23% gain pushing the price above the average purchase price of many investors. This has resulted in a steady rise in whale holdings, with those holding between 10,000 and 1 million tokens now accounting for 15.01% of the total supply.