Bitcoin ETFs have seen record inflows as miners expand their operations – with analysts from HC Wainwright linking Bitcoin’s rise to an easing of global monetary policies.
According to the latest HC Wainwright report shared with crypto.news, Bitcoin (BTC) ended the week ending September 29 up 3.2%, reaching $65,618. This contradicts its usual trend, as September is usually a weak month for Bitcoin.
Historically, September has seen an average decline of 3.7%, but this year’s gains indicate a turnaround. The company’s analysts link this unusual rise to global central banks’ easing of monetary policy, with interest rates reduced 21 times in September. Such actions often boost Bitcoin prices, as evidenced by Bitcoin’s rise following the recent interest rate cut by the Federal Reserve.
However, cryptocurrency markets fell on October 1, as geopolitical tensions between Israel and Iran led to a sell-off, causing Bitcoin to fall by 3.9% and Ethereum (ETH) to fall by more than 6%.
The conflict also impacted cryptocurrency mining stocks, with Marathon Digital and CleanSpark shares falling about 9% and 6%, respectively.
Spot ETFs and Miner Performance
According to analysts, Bitcoin exchange-traded funds saw inflows of more than $1 billion last week, marking the first such weekly inflows since July. This indicates strong investor interest, reaching $494.4 million on September 27 alone. Since January, these ETFs have amassed $18.8 billion in total inflows.
Miners also had a notable week last week. Mining stocks rose 15.1% on a weekly basis as Bitcoin prices rose, sending retail prices higher – a key measure indicating the profitability of miners.
Positive developments in the field of BTC mining
Analysts from HC Wainwight see the Bitcoin mining industry as poised for growth. Hut 8 is starting its GPU-as-a-service business, signing a five-year contract with an AI cloud developer. This deal is expected to generate annual revenues of $20 million.
Meanwhile, Cipher completed the purchase of a new 300 MW mining site in West Texas for $67.5 million, expanding its operations.
In addition, BitDir tested its second-generation SEAL02 mining chip, achieving key efficiency goals and planning for mass production in 2024.
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