Bitcoin ETF Inflows Soar to $755M as CPI Dips—Is $100K BTC the New Norm?

Bitcoin ETFs saw a big boost as inflows hit $755m on Wednesday after December’s core CPI fell.

Fidelity’s FBTC led the charge with $463m in inflows, pushing Bitcoin above $100K. Four days of outflows ended with institutions back in on Bitcoin as macro improves.

Fidelity’s Bitcoin ETF was the top performer with 7,548 BTC in inflows, more than 16x daily production of 450 BTC. Ark Invest’s ARKB added $138m and BlackRock’s iShares Bitcoin Trust (IBIT) saw $31m in inflows. BlackRock also launched a new Bitcoin ETF on CBOE Canada, showing the global demand for Bitcoin products is growing.

CPI Decline Fuels Broader Market Optimism

December’s CPI was 2.9% as expected, and core CPI 3.2% vs 3.3% expected. The miss triggered a broad market rally with the S&P 500 up over 100 points and $900 billion in market cap added during the day.

Bitcoin’s rally is all about the macro and institutions getting back in. Hunter Horsley, CEO of Bitwise Invest, said global demand for Bitcoin ETFs is strong with inquiries from various countries still coming in.

Key drivers of this Bitcoin price surge include:

  • Institutional Accumulation: Wallets holding more than 10 BTC resumed accumulation after a brief stagnation in late December.
  • Declining Retail Activity: Retail traders are increasingly cashing out profits, as evidenced by the declining number of non-empty wallets.

Bitcoin Price Chart - Source: Tradingview

Can Bitcoin Sustain Above $100K?

Despite briefly breaking the $100K milestone, Bitcoin retraced slightly and was trading at $99,597 at the time of writing, up 2.34% for the day. Trading volumes increased by 5.38% to $58 billion, reflecting strong market activity. However, volatility persists, with 24-hour liquidations exceeding $83 million, including $58 million in short liquidations, according to Coinglass.

Analysts suggest the rally could continue, supported by strong fundamentals and institutional inflows. Blockchain data indicates growing confidence in Bitcoin’s long-term potential, as major players capitalize on its current momentum.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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