Bitcoin (CRYPTO: BTC) traders are setting their sights on a $64,000 price target as BlackRock's iShares Bitcoin ETF experiences a massive $500 million inflow in a single day.
What Happened: The inflow into prominent spot Bitcoin ETFs has shown no signs of slowing, with close to $630 million added on Tuesday across all products, reported CoinDesk on Wednesday. BlackRock's IBIT contributed nearly $500 million, maintaining its lead among the 11 ETF providers.
Excluding Grayscale's Bitcoin Trust (OTC:GBTC), these ETFs have amassed over $11 billion in Bitcoin. The outflows from GBTC seem to have gradually lessened, alleviating selling pressure and boosting bullish sentiment.
The price of Bitcoin surged over $51,000 during the early European hours on Wednesday, marking a 2% increase in the past 24 hours. The CD20 Index also rose by 0.8%.
Several traders are predicting a surge to $64,000 in the near future, citing technical analysis and growing demand from institutional investors. Alex Kuptsikevich, the senior market analyst at FxPro, noted the emergence of a Fibonacci pattern, with a target of around $63.7K.
Options traders are also actively betting on Bitcoin surpassing its all-time high of $69,000 in the coming months, with some bets targeting as high as $75,000.
Why It Matters: This recent surge in Bitcoin's price comes after a sharp downturn on Tuesday, which saw the cryptocurrency dip below $49,000 following the release of the U.S. Bureau of Labor Statistics' Consumer Price Index (CPI) report.
At the same time, the addition of Bitcoin ETFs to the trading platform has been well-received by traders. Robinhood Markets Inc. Chief Financial Officer Jason Warnick noted that the Bitcoin ETFs account for about 5% of the platform's overall crypto trading activities, with most users still preferring direct cryptocurrency trading.
Looking ahead, Cathie Wood, the CEO of ARK Investment Management, predicts that the Securities and Exchange Commission (SEC) will likely approve ETFs of only Bitcoin and Ethereum (ETH) (CRYPTO: ETH) in the future.
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