Bitcoin ETFs See Record Inflows as Miners Expand Operations

Analysts from H.C. Wainwright link the recent Bitcoin rally to easing global monetary policies. According to their latest report, Bitcoin closed the week ending September 29 with a 3.2% rise, reaching $65,618. This performance is noteworthy, as September has historically been a weak month for Bitcoin, typically experiencing an average 3.7% drop. However, this year’s gains suggest a significant shift.

H.C. Wainwright analysts attribute this unusual rise to global central banks easing monetary policy, with 21 rate cuts in September. Such actions often boost Bitcoin prices, as evidenced by Bitcoin’s surge following the Federal Reserve’s recent rate cut.

Despite this positive trend, crypto markets experienced a downturn on October 1 due to geopolitical tensions between Israel and Iran, triggering a sell-off. Bitcoin dropped by 3.9%, while Ethereum fell by over 6%. The conflict also impacted crypto-mining stocks, with shares of Marathon Digital and CleanSpark declining by about 9% and 6%, respectively.

Spot ETFs and Miner Performance

According to the analysts, spot Bitcoin ETFs saw over $1 billion in inflows last week, marking the first such weekly inflows since July. This indicates strong investor interest, with $494.4 million arriving on September 27 alone. Since January, these ETFs have accumulated $18.8 billion in total inflows.

Miners also had a notable week. Mining stocks rallied 15.1% week-on-week as Bitcoin prices rose, leading to higher hash prices—a key metric indicating miner profitability.

Positive Developments in the BTC Mining Space

Analysts from H.C. Wainwright view the Bitcoin mining industry as poised for growth. Hut 8 has begun its GPU-as-a-service business, signing a five-year deal with an AI cloud developer. This deal is expected to generate $20 million in annual revenue.

Meanwhile, Cipher has completed its purchase of a new 300 MW mining site in West Texas for $67.5 million, significantly expanding its operations. Additionally, Bitdeer has tested its second-generation SEAL02 mining chip, hitting key efficiency targets and planning mass production in 2024.

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