Bitcoin ETFs experience significant inflows as miners ramp up operations — analysts attribute the BTC surge to global monetary policy easing.
Bitcoin (BTC) closed the week ending September 29 with a notable 3.2% increase, reaching $65,618, as reported by analysts. This rise diverges from the typical September trend, which often sees an average decline of 3.7%.
This year’s September gains suggest a potential shift in the market landscape, as analysts link the uptick to easing monetary policies from central banks worldwide, reflecting 21 rate cuts last month. Such monetary adjustments tend to positively impact BTC prices, as demonstrated during previous surges following rate reductions.
However, the crypto market faced a downturn on October 1 due to escalating geopolitical tensions between Israel and Iran, resulting in a 3.9% drop in Bitcoin and over a 6% decline in Ethereum (ETH).
The conflict also adversely affected crypto-mining stocks, leading to declines of approximately 9% and 6% for Marathon Digital and CleanSpark, respectively.
Spot ETFs and miner performance
Spot Bitcoin ETFs reported over $1 billion in inflows last week, marking the first significant weekly inflow since July. This surge indicates robust investor interest, highlighted by $494.4 million in inflows on September 27 alone. Since the beginning of the year, these ETFs have amassed a total of $18.8 billion in inflows.
Miners also had a strong week, with mining stocks rising 15.1% week-on-week as Bitcoin prices climbed, resulting in higher hash prices — a vital indicator of miner profitability.
Positive developments in the BTC mining industry
Industry analysts view the Bitcoin mining sector as poised for growth. One notable development is Hut 8’s initiation of its GPU-as-a-service business, having signed a five-year agreement with an AI cloud developer expected to generate $20 million annually.
Additionally, Cipher has completed the acquisition of a new 300 MW mining site in West Texas for $67.5 million, expanding its operational capacity.
Moreover, Bitdeer has successfully tested its second-generation SEAL02 mining chip, achieving critical efficiency benchmarks and is planning for mass production in 2024.
