Spot Bitcoin ETF single-day fund volume hits a record high, coupled with macro bullish news, is it expected to challenge ATH this week?

Due to signs of slowing US labor demand and economic cooling, investors’ optimism about the possibility of a Fed rate cut in September continued to rise, and the risk market traded higher on Wednesday.

ADP’s private employment data released showed that the number of hires slowed to 152,000 last month, lower than the expected 173,000. These data indicate that the U.S. labor market continues to be weak, which may provide data support for the Fed’s interest rate cut.

As the benchmark 10-year US Treasury yield falls, CME’s FedWatch tool shows that about 65% of traders currently expect the Fed to cut benchmark interest rates at the September meeting, up from less than 50% a week ago.

The US stock market continues to hit new highs, with Nvidia (NVDA.O) market capitalization surpassing $30 trillion, becoming the third stock to achieve this milestone after Apple (AAPL) and Microsoft (MSFT). Nvidia has surpassed Apple to become the world’s second largest company by market capitalization. The S&P 500 and Nasdaq indexes closed at record highs, rising by 1.18% and 1.96% respectively, while the Dow Jones index rose by 0.25%.

According to Bitpush data, Bitcoin (BTC) climbed from a low of $70,183 to a high of $71,814 in the afternoon, with a volatility of 2.35% during the trading session. It then fell to the support level near $71,000. At the time of writing this article, the trading price is $71,194, with a 24-hour increase of 0.8%.

Affected by the rise of Bitcoin, alts also benefited, with about 85% of the tokens in the top 200 market capitalization ranking on Wednesday experiencing a pump.

Stacks (STX) leads the market, up 13.3%, with a trading price of $2.40; followed by Echelon Prime (PRIME), up 10.45%; GMX (GMX) up 10.3%. Notcoin (NOT) has the largest decrease, down 10.4%; Core (CORE) down 4.6%; JasmyCoin (JASMY) down 4.2%.

The total market capitalization of cryptocurrencies is $2.64 trillion, with Bitcoin’s market share at 53.1%.

Spot Bitcoin ETF sees a sharp increase in traffic, setting the second highest daily record

In the field of US spot Bitcoin ETF, the inflow of funds reached as high as $886.6 million on Tuesday, with Fidelity’s products leading the way with a fund size of $378.7 million, followed by iShares Bitcoin Trust Fund (IBIT) under BlackRock, with an inflow of $274.4 million, and ARK 21Shares Bitcoin ETF (ARKB), with an inflow of $139 million.

This surge in inflows marks the largest single-day increase since March and the second highest single-day since the launch of BTC ETF in January.

Bloomberg’s senior ETF analyst Eric Balchunas wrote on Twitter, “Fidelity is not messing around. This is the second best day ever.”

Crypto is Macro Now author Noelle Acheson analysis said: “The macro momentum of BTC is still strong, the yield is decreasing, and the expectation of interest rate cuts is increasing. Both are strong liquidity indicators - BTC is still one of the most sensitive assets to macro liquidity. We may see some large investment platforms finally ready to allow their systems to accept customers.”

Will ATH be tested this week?

Bitcoin has risen for the fifth consecutive day, marking the longest rising trend since March. According to Secure Digital Markets analysts, “the recent approval of the ETH spot ETF key document in the United States and the US presidential campaign have also stimulated positive sentiment in the cryptocurrency market, driving a surge in Bitcoin trading activity.”

Market analyst Bloodgood said, ‘The influx of funds increased after the launch of the ETF for five months, which means that all the pessimistic predictions that the inflow will only briefly appear after the launch have been proven wrong, because TradFi will not continue to pay attention to this issue. In short: institutions are here, and they want your Bitcoin. When the Ethereum ETF starts trading - possibly in a few weeks - they may also start buying ETH.’

According to the research report of K33, the ETH spot ETF may attract 4 billion US dollars of capital inflow in the first five months, which may lead to supply shock. This situation may prompt ETH to outperform BTC, breaking a two-and-a-half-year downtrend of ETH/BTC.

Cryptocurrency analyst Bloodgood said on X platform: “The trading price of Bitcoin is about $71,000, which puts it at a historically high level and breaks through a favorable position for price discovery. Remember, if you want to be completely safe, wait for the weekly closing price before deciding what to do. Two weeks ago, we saw a breakthrough, but then the weekly candlestick closing price returned below the breakthrough area. On the daily chart, we can see that the price has clearly broken through the above level, and the trading volume has also increased—this is a typical breakthrough. The daily resistance level is at $71,480, which has already been tested today. If it breaks through, I believe we will test the ATH (all-time high) this week.”

Bitcoin options are concentrated in bullish options at $75,000

According to data from Deribit derivatives exchange, the largest group of open positions for Bitcoin options expiring at the end of June is bullish options with a strike price of $75,000.

In addition, on Wednesday, the highest trading volume on Deribit was for bullish options expiring at the end of June with a strike price of $80,000, totaling 1,723 contracts with a nominal value of over $123 million.

QCP Capital analysts said, “Our trading desk has seen strong bullish follow-up, with a large number of call options on Bitcoin expiring in June, indicating that the options market is betting that this month will decisively break through the historical high of $74,000.”