BTC unable to overcome a key resistance level, which coincidentally occurred when BlackRock’s IBIT netted huge inflows.

The BlackRock iShares Bitcoin Trust ETF (IBIT) saw a $0.53 billion inflow on Monday, July 22. The huge inflow coincided with the day that the Securities and Exchange Commission (SEC) approved spot Ether ETFs to start trading. 

BlackRock’s spot Bitcoin exchange-traded fund (ETF) ended the day with a four-month peak at $523 million into the fund. 

BlackRock Nets Historic $523M Inflow

Notably, the iShares Bitcoin Trust ETF (IBIT) purchased 7,759 Bitcoin on July 22 valued slightly above $523 million at press time, per Hey Apollo data. The July 22 inflows saw BlackRock’s total assets under management (AUM) for IBIT hit 333,000 BTC valued at $22 billion.

The inflow represents the seventh-largest in a day into the IBIT measured in US $. On March 18, BlackRock BTC ETF realized the largest inflow in a single with $849 million addition. Earlier than the month on the 5th, the fund saw $788 million added to the fund per FarSide Investors data. 

The historic inflow realized on Monday came on a day that the SEC approved spot Ether ETFs to trade within the US. Industry analysts led by Kaiko predict the ETH ETFs will yield 10% – 20% of flows generated by spot BTC ETFs since January. 

Meanwhile, analysts maintain a bullish outlook on Bitcoin throughout the short to mid-term. They bet on President Joe Biden’s last-minute exit from the November race and heightened odds by Donald Trump of election victory as an upside catalyst for the Bitcoin price. 

10x Research chief executive and founder Markus Thielen projects a solid chance that Trump could issue a surprise announcement. He anticipates the Republican nominee to make BTC a strategic reserve asset on July 25 when addressing the Bitcoin 2024 Conference in Tennessee. 

Thielen considers such an announcement could trigger the parabolic move for Bitcoin price. Crypto financial advisor and founder of DAIM, Bryan Courchesne echoes the bullish prediction. He admits the existence of a solid possibility for the GOP candidate to enshrine BTC as a strategic reserve asset.

Are Inflows to Usher Profit-Taking Spell?

The huge ETF inflow days concern Bitcoin traders over potential profit-taking spate and likely price weakness. The recent X post by trader Skew warns of the headline curse in a day that the US spot Bitcoin ETFs net over $500 million inflow. 

Skew indicates that Bitcoin ETF flows are insufficient to sustain the BTC price rebound. The trader notes that despite institutional buying fuelling the Bitcoin ETF popularity, the renaissance is far from guaranteed to prolong. 

Skew acknowledges that BlackRock’s IBIT realized $526 million inflows on Monday, though cautioned that large inflow days historically precede huge BTC sell-offs. The trader summarized that each mid-high 9-figure inflow reported by IBIT occurred around the market supply zones.

The UK-based investment firm Farside Investors data shows the net flow to US spot BTC ETFs on July 23 hit $533.6 million. The inflow was the largest since March with BlackRocks IBIT accounting for $526.7 million while Fidelity FBTC realized $23.7 million in net inflow.

The renaissance period realized by the Bitcoin ETFs could replicate March when BTC/USD realized its peak only for the market dip to erode nearly a quarter in the interim. Skew reflects on such an outcome to indicate the inability of the market to sustain the demand levels and uptrend momentum for the prices. 

As a full-time trader and analyst, Skew highlights that only consistent demand for spot BTC ETFs where spot takers absorb the supply could sustain the current price levels. Notably, seller absorption is key to furthering the Bitcoin upside towards a new all-time high (ATH). 

Currently, the Bitcoin price is yet to garner the bullish steam to make a new ATH. Comparatively, the $65,479.96 to $67,338.93 range in the past 24 hours is 10.68% below the ATH per CoinGecko data.  

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