$250 Million Bitcoin in 24 Hours: Here's What's Happening

U.Today - In a major development, Bitcoin ETFs have made a substantial purchase, acquiring $250 million worth of Bitcoin in the past day. This marks the highest single-day acquisition by Bitcoin ETFs in over a month, according to blockchain analytics provider Arkham Intelligence.

"Bitcoin ETFs are buying. The Bitcoin ETFs acquired $250 million of BTC yesterday - that’s the most in over a month," Arkham Intelligence wrote in a recent tweet.

Bitcoin ETFs, investment vehicles that allow investors to gain exposure to Bitcoin without directly holding the cryptocurrency, have been steadily increasing their holdings. This surge, as highlighted by Arkham Intelligence, saw Bitcoin ETFs scoop up $250 million worth of BTC in just one day. For perspective, this level of buying marks the highest in over a month, sparking interest and speculation about what is driving the uptick.

Several factors could be fueling the recent wave of Bitcoin ETF purchases, although the exact reason remains unknown. The cryptocurrency market is bracing for the impact of the Fed's meeting on Tuesday and Wednesday, when rates are generally expected to be cut for the first time since the beginning of a hiking cycle in March 2022. A rate cut this week might be a game-changer for risk assets like cryptocurrencies.

Bitcoin reverses weekly outflowsAccording to the most recent CoinShares report, digital asset investment products experienced a reversal, with inflows hitting $436 million following a period of outflows totaling $1.2 billion.

The jump in inflows toward the end of the week could be attributed to a major shift in market expectations for a probable 50-basis-point interest rate decrease on Sept. 18, after comments by former New York Federal Reserve President Bill Dudley. Bitcoin was the primary focus, with $436 million in inflows following a 10-day outflow of $1.18 billion.

The next few weeks will be crucial in determining whether this surge in ETF buying is a temporary trend or the beginning of a wider accumulation period that might drive Bitcoin prices higher.

At the time of writing, BTC was up 4.82% in the last 24 hours to $60,082 and up 6% weekly.

Source: Investing.com