Bitcoin Bulls “Warming Up” As Spot ETF Inflows Exceeds $1.3 Billion In 2 Weeks

Even
after
the
upswing
mid-this
week,
Bitcoin
prices
remain
wavy,
considering
price
action
in
lower
time
frames.
The
coin
is
retesting
$66,000
at
spot
rates,
but
traders
expect
the
breakout
to
have
been
confirmed,
pushing
BTC
prices
toward
$70,000.

Since
the
surge
to
all-time
highs
in
March,
the
coin
has
been
on
a
steady
downtrend,
as
shown
in
the
formation
on
the
daily
chart.

BTC
Liquidity
Is
High
Despite
Accumulation:
Analyst

Therefore,
as
doubt
creeps
in,
Willy
Woo,
a
Bitcoin
on-chain
analyst,
is
calming
down
market
participants,
saying
the
coin
is
preparing
for
sharp
gains
in
the
days
ahead.

Related
Reading

Though
prices
are
flat-lining
in
the
daily
chart,
what’s
important
to
note,
Woo says,
is
the
level
of
liquidity.

Sharing
a
chart
on
X,
Woo
emphasized
Bitcoin’s
position
within
its
liquidity
cycle.
The
Bitcoin
liquidity
cycle
is
simply
a
chart
showing
the
boom
and
bust
periods
of
the
world’s
most
valuable
coin.
Every
cycle
in
history
is
highly
influenced
by
the
availability
and
flow
of
capital
in
and
out
of
the
asset.

The
analyst
is
upbeat,
arguing
that
though
prices
are
down
from
all-time
highs
and
appear
stuck
in
a
consolidation,
the
coin
is
still
in
a
“warm-up”
phase.
Woo
adds
that
the
current
consolidation
period
means
the
long-term
risk
is
low
in
light
of
the
relatively
high
liquidity. 

Comparing
the
current
state
of
affairs
to
past
price
action,
the
analyst
predicts
that
Bitcoin
prices
will
likely
surge.
When
“the
floodgates
open”
and
new
capital
enters
the
market,
prices
will
shoot
higher,
but
so
will
risk.

Bitcoin
Uptrend
Just
Getting
Started?

Ki
Young
Ju,
the
founder
of
CryptoQuant,
a
crypto
analytics
platform,
has
supported
Woo’s
position.
To
X,
Ju


said Bitcoin
is
in
the
middle
of
a
bull
cycle. 

To
explain
this
view,
the
founder
noted
that
Bitcoin’s
capitalization
has
been
growing
faster
than
the
realized
cap.
The
realized
cap
is
a
metric
that
aims
to
gauge
the
total
value
of
all
coins
in
circulation
based
on
the
price
at
which
they
were
last
moved.

This
trend
has
persisted
for
roughly
two
years
historically.
If
this
pattern
holds,
the
bull
cycle
could
end
by
April
2025.

Related
Reading

Amid
this,
interest
in
spot
Bitcoin
exchange-traded
funds
(ETFs)
appears
to
be
swelling.
An
ETF
analyst,
Eric
Balchunas,


said these
derivative
products
have
attracted
a
net
inflow
of
over
$1.3
billion
in
the
last
two
weeks
alone.
This
uptick
effectively
offset
the
negative
flows
seen
in
April.

Feature
image
from
DALLE,
chart
from
TradingView