Digital asset investment products such as bitcoin futures exchange-traded funds saw their biggest weekly inflows since last July. BTCUSD is up 14.5% since the end of the previous week and is trading above the $34,000 level.
The funds raked in about $326 million with expectations rising that the US Securities and Exchange Commission (SEC) is poised to approve a spot-based Bitcoin ETF, according to a report by crypto asset manager CoinShares on Monday.
Forecasts for the approval of a spot Bitcoin ETF have been increasing since the SEC declined to appeal an August court ruling that threw out its rejection of a plan by Grayscale to convert its Bitcoin trust to an ETF.
While positive for Bitcoin, this weekly inflow only ranks the 21st largest on record, suggesting continued restraint among investors, according to the report. Investors are therefore showing restraint despite the prospect of a spot Bitcoin ETF approval.
The largest inflows were from Canada, Germany and Switzerland. The US accounted for 12% of the inflows. Overall, the total amount of assets under management is $37.8 billion, the highest since May 2022, the report said.
Meanwhile, market participants are awaiting the decision of the US central bank. According to analysts' forecasts, the Federal Reserve (Fed) will leave interest rates unchanged. Strong economic data will force the Fed to maintain a hawkish stance.
However, comments from Chairman Jerome Powell are still in the spotlight. They may provide additional insight into the Fed's plans for economic policy. If the head of the central bank expresses caution, it could cause anxiety among market participants and reduce interest in risky assets, including bitcoin.
A new uptrend is forming on the D1 time frame of BTCUSD price chart.
In terms of wave analysis, the price is currently forming the first ascending wave on the H4 timeframe. Relative Strength Index (RSI) indicator (standard values) portends a reversal of the rate direction and a switch to the second downward wave, which is reflected in the convergence. The descending wave is necessary to increase bullish positions.
Signal:
Short-term prospects for BTCUSD suggest selling.
The target is at the level of 31 000.
Part of the profit should be taken near the level of 33 400.
A stop-loss could be placed at the level of 37 200.
The bearish trend is short-term, so trade volume should not exceed 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
