Bitcoin funds see over $311 million weekly inflows in anticipation of spot BTC ETF approval
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●Bitcoin price performance turned flat in the last two weeks as BTC entered a tight correlation with equities.
●BTC valuation model reveals Bitcoin price is unlikely to drop below $35,000 apart from short-term volatility.
●BTC funds recorded an inflow of $311.5 million from institutional investors.
Bitcoin price performance has flattened over the past two weeks after the BTC run up to $38,400 on November 24. The largest asset by market capitalization observed an increase in capital inflow from institutional investors last week, according to a CoinShares report.
Daily Digest Market Movers: Bitcoin weekly fund inflow on the rise, valuation model sets lower boundary for BTC price
Bitcoin price rally slowed after yielding consistent gains since October 16. BTC price wiped out its weekly gains but sustained above the $37,000 level.
Data from crypto intelligence tracker, Santiment, reveals a tight correlation between Bitcoin and equities after BTC price performance flattened. BTC correlation with S&P 500 is 0.43, up from a negative 0.76 on November 1.
BTC Pearson Correlation (30 days)
The performance of equities rapidly caught up with Bitcoin in the last two weeks. Analysts at Santiment believe a BTC price rally without stocks following suit would be a strong sign that correlation between the sectors is breaking again. This is a key indicator to watch out for. Typically, a break in correlation is a sign of a rally in Bitcoin.
Cryptocurrency and equities correlation, Source: Santiment.
A Bitcoin valuation model based on mining difficulty (hashrate) increased to $35,000 on November 27. According to PlanB, the pseudonymous analyst behind the Bitcoin Stock-to-Flow model (S2F model), believes that apart from possible black swans or short- term volatility, Bitcoin price is not likely to go below $35,000 in the longer term.
Institutional investors have poured $311.5 million in BTC funds in the past week, according to a latest CoinShares report. The year to date inflows to BTC funds has hit $1,550 million.
Technical Analysis: Bitcoin price rally hits pause
According to crypto analyst Adrian Zduńczyk, Bitcoin’s breakout target is the range between $39,000 and $40,000. The analyst has identified the range between $25,000 and $32,000, as the trading range for Bitcoin.
BTC/USD 1-day price chart, Source: TradingView.
At the time of writing, Bitcoin price is above the $37,000 mark on Binance, the asset’s price remained largely unchanged in the past week.
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