The post Bitcoin ETF Activity Hits $1B in Sales Amid Strong Buying Signals appeared on BitcoinEthereumNews.com.
Last week, Bitcoin ETFs experienced robust activity, with over 10,800 BTC (valued at $1 billion) sold, according to on-chain analytics shared by Negentropic, managed by Glassnode co-founders Jan Happel and Jan Aleman. Despite the significant sales volume, buying momentum remains strong, driven by anticipation of increased institutional participation ahead of Donald Trump’s Inauguration Day. The surge in Bitcoin ETF activity highlights the growing role of traditional finance investors in shaping the cryptocurrency market, even amid seasonal fluctuations. Key Highlights from Bitcoin ETF Activity 1. $1 Billion in Sales Total Sales: Over 10,800 BTC were sold last week, equating to $1 billion in value. Daily Focus: Notable activity occurred on Friday, with 3,100 BTC purchased, signaling renewed buying interest. 2. Institutional Momentum The involvement of traditional finance investors continues to bolster Bitcoin ETFs, especially in anticipation of Trump’s inauguration and potential policy shifts. Seasonal factors may have influenced the recent sales but do not signify waning demand. Seasonal Factors Behind the Sales Profit-Taking Ahead of Year-End Reports Institutional investors may have sold BTC to lock in profits for 2024, aligning with fiscal year-end reporting requirements. Market Realignment Post-holiday market adjustments often result in short-term volatility, as investors rebalance portfolios. Anticipation of CPI Data The upcoming U.S. Consumer Price Index (CPI) report on January 15 could also be influencing cautious trading behaviors. Why Strong Buying Momentum is Expected 1. Anticipation Around Trump’s Inauguration Investors are eyeing Trump’s Inauguration Day on January 20 for potential announcements favoring Bitcoin and crypto adoption, including speculated moves toward a national Bitcoin reserve. 2. ETF Inflows from Traditional Finance With Bitcoin ETFs gaining popularity among traditional finance investors, more inflows are expected, particularly as the sector matures and regulatory clarity improves. 3. Broader Market Sentiment Crypto Fear & Greed Index recently entered the Extreme Greed zone, suggesting…