Bitcoin ETFs saw significant inflows of $753.7 million, the highest in three months, indicating a potential market recovery.
Bitcoin exchange-traded funds (ETFs) experienced a surge of $753.7 million in capital inflows during the latest trading session, the highest in three months.
Fidelity's FBTC led the charge, drawing in $351 million, with Bitwise's BITB and BlackRock's IBIT following at $159 million and $126 million, respectively. These inflows mark a notable turnaround compared to the losses of $3.4 billion in November and $1.09 billion in December, as total inflows since January 1 have exceeded $660 million.
In addition, Ethereum ETFs attracted nearly $130 million in a single day, reflecting a broader recovery in investor sentiment.
“The inflow into Bitcoin ETFs indicates a revival of institutional demand, suggesting that investors are shifting capital after a cautious period,” stated Nick Rak, head of LVRG Research.
Vincent Liu, Chief Investment Officer at Kronos Research, attributed the positive momentum to an improved macroeconomic environment, citing key factors such as declining inflation rates and potential regulatory developments in the crypto market. The U.S. Senate Banking Committee is preparing to vote on a bill aimed at clarifying the structure of the crypto market.
Price Movements and Market Sentiment
As confidence grew among investors, Bitcoin's price rose 3.1% to around $94,900, while Ethereum saw a 5.3% increase, trading at about $3,300. Liu noted that substantial inflows into ETFs are outpacing the supply from miners, resulting in a favorable market dynamic driven by spot demand.
Rak highlighted that the market indicators signal a "healthy reset" following the previous downturn. The overall market capitalization rose by 3.2%, reaching $3.3 trillion, with market sentiment moving to a neutral stance for the first time since October.
Interestingly, the 52-week correlation between Bitcoin and gold has reached zero for the first time since mid-2022, a historical indicator that often precedes price rallies in Bitcoin.
