The Bitcoin bull market could be coming soon, according to CryptoQuant's NUPL data.
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HOMECRYPTO NEWSBITCOIN (BTC) IS APPROACHING A TURNING POINT AFTER EXTENDING RALLY BEYOND $47K
Bitcoin (BTC) Is Approaching a Turning Point After Extending Rally Beyond $47k


Chayanika Deka
Feb 9, 2024 21:37
The Bitcoin bull market could be coming soon, according to CryptoQuant's NUPL data.
Bitcoin_Turning_Point
Bitcoin witnessed significant developments in recent weeks that have helped it extend its rally, surging past $47,000 for the first time in nearly a month. The uptick has brought a sense of relief for its investors, who recently endured a brief plunge to 38,500 and now find themselves comfortably in the profit zone amidst market recovery.

Interestingly, the latest data by a CryptoQuant analyst suggests that the market is approaching a “turning point.”

Where Is Bitcoin Heading?
Net Unrealized Profit/Loss (NUPL) is an important metric for assessing the overall sentiment of Bitcoin investors and whether the market is overvalued or undervalued. As of February 8, 2024, with a NUPL value of 0.48, investors are evidently still in profit, although indications signal a transition to a crucial stage.

CryptoQuant analysis revealed that the significance of NUPL extends beyond mere profitability metrics. It also functions as a precursor to market trends, with values surpassing 0.5 historically, marking the beginning of a bullish market phase.
Therefore, the current NUPL value indicates a potential transition to a more bullish stance. Investors may interpret this as a signal to increase their exposure to the largest cryptocurrency. Such a sentiment can further propel Bitcoin’s price appreciation.

Bitcoin ETFs Set Record
The signal for the onset of a bull run coincided with the notable inflow recorded by the US spot Bitcoin ETFs despite encountering challenges in the initial days. According to data from BitMEX research, Bitcoin ETFs have raked in a total inflow of $2.11 billion since its launch on January 11th.

The ETFs experienced an inflow of $405 million, which translated to almost 8,935 BTC. The leading contributors to these inflows include investment titans BlackRock (IBIT) and Fidelity (FBTC).
As reported by CryptoPotato, the performance of BlackRock and Fidelity ETFs stands out, particularly considering that many other ETFs on the list were categorized as “Bring Your Own Assets” (BYOA) ETFs, suggesting that a single investor was accountable for the entirety of the ETF’s Assets Under Management (AUM).

Additionally, the two ETFs have consistently managed to attract inflows on each trading day following their launch.

Bitcoin ETFs Absorb $400 Million In One Day, Surpass $2 Billion Since Launchl

Bitcoin ETF inflows are not slowing down as BTC re-approaches a 23-month high.
Bitcoin spot ETFs recorded $400 million of net inflows on Thursday, bringing their total inflows since launch beyond $2 billion for the first time.

The inflows were coupled by a surge in Bitcoin’s price late this week, taking it to $48,000 as of Friday.

Bitcoin ETF Inflows Outpacing Grayscale
In terms of daily flows, Thursday was the third best day yet for Bitcoin ETFs since going live on January 11. Their best performance remains the day of launch when they raked in $655 million in total, followed by January 17 when they absorbed $453 million.

These figures include flows from the Grayscale Bitcoin Trust (GBTC) – the existing fund that converted into a spot ETF last month. Since the fund’s 1.5% management fee is considerably higher than its competitors, the fund has suffered $6.3 billion of outflows since conversion, without a single day of inflows since that time.

That said, its outflows have slowed considerably in recent weeks, from ~$500 million per day three weeks ago to ~$100 million per day this month.
On Thursday, the fund suffered $101.6 million in outflows. By contrast, with the exception of Franklin Templeton, eight out of nine funds managed by rivals were net gainers on Thursday, absorbing $506.7 million in total.

BlackRock And Fidelity’s Massive Flows
Most of those flows went to the top two newcomers, BlackRock and Fidelity, whose funds absorbed $204.1 million and $128.3 million respectively. The tallied an impressive daily volume of $480.3 million, trumping Grayscale’s $371.8 million figure.

“Normally it takes 5-10 years for a newborn to get even close to toppling a category’s liquidity king(s),” said Bloomberg ETF analyst Eric Balchunas about BlackRock’s ETF volume overcoming Grayscale’s. “They’ll all go back and forth for a bit each day but over time the gap will grow.”

Opposite Grayscale, both BlackRock and Fidelity still carry a flawless streak of daily inflows over their first month of activity. In fact, both funds have broken the record for the most assets any newborn ETF has ever recorded in their first 30 days live – and they still have two days to go.
Two other Bitcoin ETFs launched by Bitwise and Ark Invest also cracked the top 25.

By the end of the year, Bloomberg’s James Seyffart said he’d “likely take the over” on new Bitcoin ETFs surpassing $10 billion in total assets.