GM. Today’s headlines:
- Microsoft shareholders to vote on Bitcoin Diversification Assessment.
- Denmark to impose unrealized gains tax on Bitcoin.
- Bitcoin ETF demand hits 6-month high.
$BTC is ranging between resistance of $70,000 and support of the 200-day moving average at $63,264. Traders appear unsure ahead of the 5 Nov US Presidential elections as Bitcoin continues to range between these two key levels.
Figure 1: Bitcoin ranging between resistance and support.
Bitcoin is up nearly 100% over the past 12 months on higher timeframes, and after a period of ranging may be preparing for an upside breakout soon if the bull run continues.
Figure 2: Bitcoin is up +96% over the past 12 months.
News You Need to Know
- Standard Chartered believes Bitcoin will hit $73,000 on Election day.
- Microsoft shareholders to vote on Bitcoin Diversification Assessment.
- Denmark to impose unrealized gains tax on Bitcoin.
- Bitcoin ETF demand hits 6-month high.
The Big Story
Bitcoin ETF demand hits 6 month high.
The past week has seen a huge surge in demand for the spot Bitcoin ETFs.
After a period of mixed performance and outflows in recent months, the tide appears to have turned with significant inflows recently.
This can be seen by the large green bars over the past 10 days on the chart below. The chart is showing aggregated inflows to all the major spot Bitcoin ETFs in US Dollar terms where green bars are positive net inflows, red bars are outflows.
Figure 3: Bitcoin ETF Daily Flows (USD).
The consistent green candles are reminiscent of the performance seen at the start of the year around the initial launch of the spot Bitcoin ETFs.
Blackrock’s IBIT continues to be the star performer, with over $25B worth of inflows.
Figure 4: ETF breakdown by individual spot ETF’s.
The long-term trend across the board for spot Bitcoin ETF flows is clearly up.
If Bitcoin price breaks out to new all-time highs we expect this trend to accelerate, which has the potential to have a reflexive impact on Bitcoin price, driving it higher over the coming months.
Key Chart
Each week, our BM Pro Analysts hand-pick a must-see chart for you. This week:
Bitcoin HODL Waves
Figure 5: HODL Waves
What it is
- Bitcoin HODL Waves visualize the duration of Bitcoin holding by categorizing wallets based on how long coins have remained unmoved.
- They use color bands to represent different holding periods, such as under a week (hot colours) to over ten years (cold colours), creating "waves" that show age distribution trends.
Why it matters
- Indicates market sentiment: HODL Waves reveal whether investors are holding or selling, helping to gauge current market sentiment.
- Shows accumulation patterns: When long-term holding increases, it often signals a belief in future value growth, as investors are reluctant to sell.
- Historical price correlation: Changes in HODL patterns have historically aligned with Bitcoin's market cycles, aiding in timing investments.
What it is showing right now
- Increased long-term holding: Recently, HODL Waves indicate more coins are sitting idle for extended periods, which could signal strong conviction among holders.
- Decreased short-term trading: Fewer coins are moving in the shorter-term bands, suggesting a reduction in speculative trading and possible preparation for a market shift.
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The Bitcoin Magazine Pro Team.