"Resilient Despite Fed Hawk Warning"...Bitcoin (BTC), $2.8 Billion ETF Inflow

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Bitcoin (BTC) continues its bullish trend, supported by spot and ETF demand amidst macroeconomic pressures.

According to Benzinga on September 1 (local time), Bitcoin rose approximately 25% in August. The increase from the bear market low exceeded 40%. It once reached $81,500 but fell below $77,000 after hawkish remarks from Federal Reserve (Fed) Chairman Kevin Warsh. Despite increased monetary policy uncertainty, the market's bullish structure has been maintained, according to analysis.

Bitfinex analyzed that the recent surge is more significantly influenced by spot demand than leverage. Open interest gradually increased to $55.6 billion. In contrast, the futures basis remained at a limited level. Even after the record short squeeze on August 19, there was no excessive leverage expansion in the derivatives market.

U.S. Bitcoin spot ETFs saw a net inflow of $924.5 million last week. On Friday, $201.9 million flowed out after Warsh's remarks, but the cumulative net inflow over the past two weeks reached approximately $2.8 billion. Last week's ETF inflow was about four times the volume of newly issued Bitcoin during the same period. This means that ETF buying demand was much stronger than new supply.

Institutional demand also absorbed selling from large holders. Approximately 59,100 BTC were added to custodial addresses since late June. During the same period, large whales sold approximately 50,500 BTC. Ethereum (ETH) investment products also saw an inflow of $815.7 million last week. ETF demand relative to market capitalization was approximately four times stronger for Ethereum than for Bitcoin.

[Article Key Summary]

-Analysis shows that Bitcoin's uptrend is driven by spot and ETF demand rather than increased leverage.

-U.S. Bitcoin spot ETFs saw a net inflow of approximately $2.8 billion over the past two weeks, with last week's inflow being about four times the new issuance volume.

-While custodial addresses increased by approximately 59,100 BTC since late June, large whales sold approximately 50,500 BTC.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*