Bitcoin
Bitcoin ETF Flows Reach Highest Level in Months as BTC Price Surges Past $68,000
After enduring a significant 20% price correction earlier this month that saw Bitcoin fall below $56,400 and increased outflows from the Bitcoin ETF market, the world’s largest cryptocurrency has managed to stage a strong comeback. It broke above the key $66,000 resistance level and turned it into a new support zone.
BTC Rebounds as Bitcoin ETF Flows Soar
The resurgence of Bitcoin’s price is closely linked to the revival of inflows into the US Bitcoin ETF spot market. Data from Farside shows that spot Bitcoin ETFs had their best week of inflows in two months, with the US fund category collectively achieving $948 million in positive net flows from May 13-17.
Interestingly, the majority of these inflows, approximately 89%, occurred in the last three trading days of the week, which industry analysts and researchers such as James Butterfill of CoinShares attribute to a change in investor sentiment following the release of a price. less than – expected Consumer Price Index (CPI) on Wednesday. Butterfill stated:
The inflows were an immediate response to the lower-than-expected CPI report, highlighting our view that Bitcoin prices have recovered to interest rate expectations.
Regionally, in terms of the global Bitcoin market, US-dominated flows were $1,002 million, while Switzerland and Germany also recorded small flows of $27 million and $4.2 million, respectively.
Notably, the Bitcoin Trust in Grayscalewhich has seen outflows of $16.6 billion since the launch of the first Bitcoin ETF in January, has seen small inflows totaling $18 million.
Beyond just spot Bitcoin ETFs, the digital asset investment product space has experienced Appetizer for the second week in a row, totaling US$932 million, according to CoinShares. However, trading volumes remained relatively low at $10.5 billion, compared to $40 billion recorded in March.
Bitcoin Poised for Additional Gains?
Renewed institutional interest in Bitcoin ETFs and the broader digital asset space has coincided with a strong price recovery for the leading cryptocurrency. Bitcoin’s ability to firmly hold the $66,250 support level, with over 530,000 BTC trading at that price, has given analysts confidence in the asset’s potential for further gains.
According to For crypto analyst Ali Martinez, if the $66,000 support holds, Bitcoin could see strong potential for additional gains in the coming days, demonstrating the bullish sentiment surrounding the market’s largest cryptocurrency.
However, although Bitcoin has managed to recover above the crucial $66,000 level following the recent pullback, the leading cryptocurrency still faces a critical test as it attempts to break out of its established trading range.
Crypto analyst Rekt Capital has pointed that despite Bitcoin registering a confirmation of breaking the bull flag, the asset still needs to secure a daily close above $67,000 to continue its trend towards higher highs and confirm the potential for further upside.
The analyst still explains that Bitcoin has been oscillating between its low and high range between $60,000 and $70,000 for more than two months, a natural process of consolidation. As part of this, Rekt Capital believes that Bitcoin should be able to revisit the $71,500 high range over time.
At the time of writing, BTC is trading at $68,130, a substantial increase of 9% in the last week alone and over 8% in the last fourteen days.
Featured image from Shutterstock, chart from TradingView.com