US investors show growing interest in Bitcoin ETFs as China considers massive capital injection of over $142 billion.
BTC ETFs see second consecutive day with over $100M in daily net inflows amidst global monetary easing.
Worldcoin surges as World ID launches in multiple
Bitcoin Trades Above $63,000 Amid Weekly Gain
Bitcoin’s price has been fluctuating, experiencing a slight daily decline but a weekly gain. This trend is also reflected in Bitcoin exchange-traded funds (ETFs), which have seen significant positive net inflows. This indicates a growing interest and accumulation of BTC among investors.
China Considers Major Capital Injection into State Banks
China is reportedly considering a substantial 1 trillion yuan capital injection into its major state banks to bolster the economy. This decision follows the People’s Bank of China’s (PBOC) recent easing measures, including cutting the reserve requirement ratio and lowering the repo rate.
The PBOC’s decisions are aimed at stimulating economic growth and mitigating the effects of a slowing economy. The capital injection into state banks is expected to increase their capacity to support the struggling economy and provide liquidity to businesses.
Ether Trades Above $2,500 with Weekly Gain
Ether has also experienced a price surge, trading above $2,500 despite a small daily drop. Its ETFs have shown positive inflows, indicating a growing interest in ETH among investors.
According to data from SoSoValue, the total daily net inflow into BTC ETFs has cracked $100 million for the second day in a row. This marks a five-day streak of positive net inflow for the funds, suggesting a rising trend of accumulation.
Indicator Flips to Positive
The indicator tracking 30-day net holdings among ETFs has flipped to positive for the first time in September. This suggests that investors are accumulating BTC instead of selling it, which is a bullish sign for the cryptocurrency market.
ETH ETF Demand Rebounds
Spot ETH ETF demand has rebounded, with the 30-day net change in total holdings turning positive. This indicates that investors are increasingly interested in ETH and its potential for growth.
Rising Ethereum Gas Fees Coincide with ETH Outperformance
Rising Ethereum gas fees have coincided with ETH outperforming BTC following the Fed’s 50 basis points rate cut. According to Presto Research, this trend may be driven by an increase in network transactions and a growing interest in ETH among investors.
WorldCoin’s WLD Tokens Surge
Sam Altman-backed WorldCoin’s WLD tokens have surged by 14% in the past 24 hours. This rise is attributed to the company’s expansion announcements and developments at OpenAI, another Altman company.
The executive shuffle at OpenAI and its switch from a nonprofit to a for-profit benefit corporation may have contributed to the surge in WLD token prices. Crypto traders often consider the two companies closely related, which may be driving the interest in WorldCoin’s tokens.
Potential Recovery in Total Value Locked (TVL)
While on-chain yields remain below the three-month treasury bill, some investors are positioning for a potential recovery in total value locked (TVL). However, a broader capital migration may not happen until 2025, according to Presto Research.
Key Takeaways
- Bitcoin trades above $63,000 with a weekly gain despite a slight daily decline.
- BTC ETFs see significant positive net inflows, indicating a trend towards accumulation.
- China considers a major capital injection into state banks to bolster the economy.
- Ether trades above $2,500 with a weekly gain and spot ETH ETFs show positive inflows.
- WorldCoin’s WLD tokens surge by 14% following expansion announcements and developments at OpenAI.
