U.S. spot Bitcoin ETFs pulled in about $1.7 billion over two days as Bitcoin touched an eight-month high before retreating toward $85,000. A BTCS strategy adviser says the rally started with cash buying but is now attracting leverage, with $90,000 as the next test.
Bitcoin slipped back toward $85,000 on Sep. 24, retreating from an eight-month high it reached on Sep. 21, even as U.S. spot ETFs recorded another day of net inflows. Bitcoin had touched $87,392 on Sep. 21, its highest price since Jan. 29, before falling back within days.
Wojciech Kaszycki, strategy adviser to Warsaw-listed Bitcoin treasury company BTCS S.A., told crypto.news that ETF inflows, futures open interest and funding rates together give a clearer read on the rally than price alone. He said cash buying supported the initial move, while leverage has started building on top of it.
According to crypto.news: "Spot-led start, with leverage now climbing on top," Kaszycki said, adding that this is what he will be watching next week.
ETF inflows have outpaced the rise in open interest
U.S. spot Bitcoin ETFs took in $999 million on Sep. 21 and $714.7 million on Sep. 22. They added $346.98 million more on Sep. 23. Kaszycki estimated that open interest rose about 7% over a month. Funding ran around 8% on an annualized basis — positive, he said, but not excessive.
He contrasted the current stretch with August, when a rally faded as ETF buying paused. Open interest fell and funding approached zero, he said, before the latest inflows arrived.
A move through $90,000 would meet selling, Kaszycki says
Kaszycki sees $90,000 as both a round-number level and a test of whether spot buyers can absorb sales. He said holders who bought Bitcoin between $90,000 and $110,000 last year may sell near their purchase prices if the price returns there. Buyers who entered around $63,000 in August may also take profits. Short liquidations could push Bitcoin higher as traders buy back contracts to close losing positions, he said, but that buying ends once those positions clear.
Treasury companies face risk beyond their own leverage
Kaszycki favors scheduled purchases over timing each swing. BTCS carries out most of its larger purchases over the counter, he said, and slows individual orders in fast markets rather than pausing its buying program.
He warned that futures liquidations can lower the market value of a company's Bitcoin holdings within minutes, even without borrowed money, since leveraged crypto positions can be forced closed at any hour while fund transactions run on trading-day schedules. He advised against margin, perpetual futures or borrowing against Bitcoin on terms that can force rapid repayment.
Source: crypto.news
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