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Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.
Bitcoin Advances as Spot ETF Market Celebrates First Anniversary
Meanwhile, bitcoin (BTC) marked a significant milestone as the US BTC-spot ETF market celebrated its first anniversary. It was an impressive first year, registering a whopping $36 billion in total net inflows.
Bloomberg Intelligence ETF Analyst James Seyffart commented:
“Just how big was the first year for Bitcoin ETFs? Massive.”
Seyffart also shared a list of the largest ETFs one year after launching, saying four BTC-spot ETFs would make the top 20, even if adjusted for inflation. Significantly, BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) topped the table, with Fidelity’s Wise Origin Bitcoin Fund (FBTC) ranking fourth.
US Strategic Bitcoin Reserve Developments Drive BTC Demand
While the US BTC-spot ETF market celebrated its first year, US Strategic Bitcoin Reserve (SBR) developments drew interest.
On January 10, several US states introduced Strategic Reserve bills, including New Hampshire, Texas, and Pennsylvania.
The SBR-related activity suggests a national SBR is plausible, boosting BTC demand. BTC rebounded from a Friday low of $92,249, with the US BTC-spot ETF market recording net inflows for the day. According to Farside Investors:
- Fidelity Wise Origin Bitcoin Fund (FBTC) reported net outflows of $16.6 million on January 8.
- Grayscale Bitcoin Trust (GBTC) had net outflows of $13.5 million.
Excluding iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market had net inflows of $34.2 million.
Progress toward an SBR could drive demand for US BTC-spot ETFs and BTC to new highs. Amicus Curiae attorney John E. Deaton recently commented on the potential impact of an SBR on BTC price trends, saying,
“If the U.S. Government (USG) passes Senator Lummis’ Bill and begins buying BTC, it will no doubt cause other nations to follow suit, just like with gold. It could literally create Nation State FOMO, and if that occurs, $1M per BTC happens a lot faster than people think.”
Bitcoin Price Outlook
On Friday, January 10, BTC gained 2.27%, reversing Thursday’s 2.53% loss to close at $94,818. Significantly, BTC recovered from early losses despite a hotter-than-expected US Jobs Report signaling a more hawkish Fed rate path. Friday’s price action suggests that progress toward a US SBR would have more influence than Fed monetary policy.
BTC’s near-term trends depend on BTC-spot ETF market flow trends and Strategic Bitcoin Reserve (SBR) developments. Progress toward a US SBR and BTC-spot ETF inflows would signal a supply-demand balance firmly tilted in BTC’s favor. This scenario would support a BTC climb to new highs. However, a lack of progress toward an SBR could drag BTC below the $90,742 support level.
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