Bitcoin Surges $3,000 on $561M BTC ETF Inflows Amid Market Recovery
Bitcoin rebounded strongly following recent market declines, trading above $78,000 with a 4% gain in the last 24 hours...
Quick overview
- Bitcoin rebounded strongly, trading above $78,000 with a 4% gain in the last 24 hours, driven by significant inflows into Bitcoin ETFs totaling $561 million.
- Institutional interest is evident as firms like Fidelity and BlackRock contributed substantial inflows, while Michael Saylor's Strategy purchased 855 BTC for $75 million.
- Ethereum saw a price increase of over 5%, but its ETF inflows remained negative, indicating a divergence in market momentum between Bitcoin and altcoins.
- Analysts caution that despite the recent rally, macroeconomic uncertainties and mixed market signals suggest potential volatility ahead.
Bitcoin rebounded strongly following recent market declines, trading above $78,000 with a 4% gain in the last 24 hours. The recent rally coincides with significant inflows into Bitcoin exchange-traded funds (ETFs), signaling renewed institutional interest.
Data from SoSoValue shows that BTC ETFs received a total of $561 million in inflows. Fidelity’s FBTC accounted for $153.35 million, while BlackRock’s IBIT added $141.99 million. These inflows partially offset previous outflows that contributed to widespread liquidations in the cryptocurrency market, which caused millions in losses.
- BTC price: $78,200 (approx.)
- 24-hour gain: 4%
- BTC ETF inflows: $561M total
Treasury firms are also increasing their exposure. Michael Saylor’s Strategy purchased 855 BTC for $75 million, despite market prices remaining below the average acquisition cost.
Ethereum Gains Amid Weak Institutional Demand
Ethereum recorded a price increase exceeding 5%, but its ETF inflows remained negative. The lower institutional participation highlights a divergence between BTC and altcoins, suggesting that market momentum remains concentrated in Bitcoin.
https://sosovalue.com/assets/etf/us-btc-spot/
Analysts warn that this upward move may not signal a sustained trend. Macro uncertainty and tight financial conditions continue to weigh on investor sentiment, keeping cryptocurrency markets volatile.
Market Signals Point to Caution
Traders remain divided on Bitcoin’s next direction. Notable analysts, including Peter Brandt, have projected potential downside to the $66,000 range, arguing that the current rally may be short-lived.
Other market indicators offer mixed signals:
- Bitcoin funding rates have remained negative for three consecutive days, historically considered a buy signal.
- BTC has yet to close the CME futures gap at $84,000, limiting immediate upside.
- Futures trading volume dropped 27% to $75.27 billion, while open interest rose slightly to $51.47 billion.
These data points suggest that while Bitcoin shows signs of recovery, the market remains cautious. Investors should weigh short-term gains against macroeconomic risks and institutional behavior before committing capital.
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