Bitcoin ETF Inflows Top $1B; Miners Rally

Last week, Bitcoin ETFs saw remarkable inflows exceeding $1 billion, while Bitcoin miners observed a substantial rally, highlighting a significant movement within the cryptocurrency space.

According to a recent report by H.C. Wainwright shared with crypto.news, Bitcoin (BTC) experienced a notable 3.2% increase, closing at $65,618 by the week ending September 29. This marked an unexpected shift from Bitcoin’s typical September performance, a month that usually shows a 3.7% decline on average. This surge is attributed to the global easing of monetary policies, with central banks implementing 21 rate cuts during September. These actions have historically elevated Bitcoin prices, mirroring the surge that followed the Federal Reserve’s recent rate cut.

However, on October 1, geopolitical tensions between Israel and Iran led to a significant market downturn. Bitcoin dropped by 3.9%, while Ethereum (ETH) fell by over 6%, reflecting broader market sentiments. This conflict also caused a decline in crypto-mining stocks, with companies like Marathon Digital and CleanSpark seeing their shares fall by approximately 9% and 6%, respectively.

Bitcoin ETFs Register Record Inflows Amid Miner Rally

Analysts indicate that spot Bitcoin ETFs recorded over $1 billion in inflows last week, the first significant weekly inflows since July. This surge showcases strong investor confidence, with $494.4 million flowing in on September 27 alone. Since the beginning of this year, these ETFs have attracted a total of $18.8 billion in inflows.

The mining sector also enjoyed a positive week, with mining stocks surging 15.1% week-on-week. As Bitcoin prices climbed, hash prices followed suit, enhancing miner profitability and signaling a robust mining environment.

Promising Growth in Bitcoin Mining Sector

H.C. Wainwright analysts observe that the Bitcoin mining industry is on a promising growth trajectory. Hut 8 has initiated its GPU-as-a-Service business, securing a five-year contract with an AI cloud developer, projected to generate $20 million in annual revenue. Simultaneously, Cipher has expanded its operations by acquiring a new 300 MW mining site in West Texas for $67.5 million.

Additionally, Bitdeer has tested its second-generation SEAL02 mining chip, achieving critical efficiency targets with plans for mass production in 2024. These developments underline the industry’s potential for significant growth and innovation.

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