Bitcoin ETFs log biggest inflows in a month as QCP flags equity risk to $80,000
In brief
- Spot U.S. bitcoin ETFs drew roughly $527 million in net flows, their biggest in a month, per CoinDesk.
- BlackRock's IBIT took in $665 million, its largest inflows in over a year.
- Ether ETFs lost $103.3 million, a fourth straight day of outflows.
- QCP Capital said sustained equity deleveraging could threaten bitcoin's $80,000 support.
IBIT carried the inflows
Bitcoin ETF demand came back in a big way. The U.S. spot funds attracted roughly $527 million in net flows, CoinDesk reported, with BlackRock's IBIT taking in $665 million (its largest inflows in over a year) while funds from Fidelity and Grayscale saw withdrawals. CoinDesk didn't name a data provider for the figures.
Ether ETFs went the other way.
They lost $103.3 million, marking a fourth consecutive day of outflows. Bitcoin's price stayed above $80,000 after demand picked up on Monday, according to the report.
Equities are QCP's worry
As of CoinDesk's report (around 11:14 UTC on Oct. 20), ether had fallen 1.7% to about $2,392.01 and the CoinDesk 20 Index lost roughly 1.6%, pulled lower by declines in Asian stocks and rising oil prices. Nasdaq 100 and S&P 500 futures were lower too, and Coinbase Global and Galaxy Digital fell in pre-market trading.
That's the backdrop for QCP Capital's note. Analysts at the firm wrote that further weakness in equities could damp demand, and they singled out bitcoin's $80,000 support level.
"Broader equity deleveraging dynamics could transmit to cryptocurrency markets and potentially threaten the $80,000 support level if sustained," the QCP analysts wrote.
It isn't a one-way call, though. The analysts added that a continued Treasury rally could support risk assets, particularly alongside falling real yields and a weaker dollar.
Rates, oil and the weekly chart
The U.S. 10-year Treasury yield was around 5.13% and Brent crude traded near $110 a barrel at the time of the report. The Federal Reserve is widely expected to hold rates steady next week, though prediction markets are pricing in a 25 basis-point increase for the following month.
CoinDesk's own chart read was calmer. Bitcoin's weekly trend holds support above the 50-week EMA with no divergence in the relative strength index, and the publication said consolidation above that support looks more likely than a major breakdown.
