The new bitcoin spot ETFs have bought another $488.1 million worth of BTC on Wednesday following the near record purchase of $887 million on Tuesday.
Fidelity bought $220 billion on Wednesday, with this issuer alone buying more than half a billion dollars worth of bitcoin in the past two days.
BlackRock added $155 million, bringing it to $420 million for the past two days, while Ark Invest bought $71.4 million.
Adding to the bullishness, Grayscale saw inflows, rather than outflows, for the past two days at a combined $42 million.
This sudden shift to significant inflows is on the back of the Canadian central bank cutting interest rates by 0.25%.
The European Central Bank is also expected to cut rates later day for the first time in five years since 2019.
In addition, the dollar strength index (DXY) has dived to 103.8 from near 105 at the end of last month with major US stock indexes rising to a new all time high.
Bitcoin has not yet crossed its all time high of $74,000, rising to near $72,000 with it currently trading at just under $71,000.
The huge inflows yesterday seem to have had little effect on the price, probably due to bots playing the three months-long range.
That range trading may have added artificial new supply, suggesting that a breakout might be speedily upwards to a new level when and if it happens.
Or it keeps ranging, but we’re now in the third month since March 12th and that’s how long it usually lasts in a bull.
Moreover July is three months after the halving when the effects might start being felt, bringing the timeline slightly forward.
Macro is also turning favorable. The Federal Reserve Banks will ease the quantitative tightening – money burning – this month by slowing down the rate of bond selling.
That might be followed by potential rate cuts in autumn, especially as a recent dive in oil prices to $74 from near $80 might ease inflation pressures.
