Investment flows into crypto exchange-traded products surged to a record level last week, signaling strong demand from large investors.
Based on reports, traders pointed to a mix of macro events that likely pushed allocations into crypto. A recent cut to interest rates by the Fed, weaker-than-expected employment numbers, and concerns about a US government shutdown were all cited by market watchers as triggers.
According to market analysts and on-chain data observers, the supply of Bitcoin on exchanges has dropped to levels not seen in six years. That trend is often read as holders choosing to keep coins off market platforms, which can reduce selling pressure.
Glassnode’s pricing bands were used by some analysts to argue that Bitcoin was holding a key support area and that upside toward $139,800 was possible if that support stayed intact.
Another forecast mentioned a lower time horizon at around $135,000. These targets were used in the market commentary, and they helped shape market expectations during the move up.
Trading flows, too, indicated a clear bias: investors were generally long. As James Butterfill, head of research at CoinShares, describes, buyers did not even turn to short investment products at price highs. If this behavior does not reflect an intent to hedge against the uptick, then it reflects confidence that the asset continues to appreciate.
Featured image from Unsplash, chart from TradingView
