On March 20, Spot Bitcoin Exchange Traded Funds experienced a huge surge of inflows, jumping more than 1,300% within a day. This was after the U.S. Fed kept interest rates at their current level. The move helped to ease fears about inflation and economic uncertainty.
The following is a list of data SoSoValue reported that 12 Bitcoin spot ETFs had collectively received $165.75 in net inflows, up from just $11.8 the previous day. This was also the fifth consecutive day with positive inflows. Nearly $700 million entered Bitcoin ETFs during that time.
BlackRock IBIT was the leader with $172.14 in net inflows after an entire day of no movement. VanEck’s HODL Trust, Fidelity FBTC and Grayscale mini Bitcoin Trust all saw gains in the range of $11.9m, $9.19m and $5.22m.
But not all investors benefited. Investors pulled out $32,7 million from funds like Bitwise’s BITB and Grayscale’s ETHE. Franklin Templeton also had EZBC.
After a five-week period of negative flows, ETFs are now in high demand. The investors were holding back because of concerns about trade war talks, increasing geopolitical tensions and macro uncertainties. However, investors were holding back due to concerns over trade war talk, rising geopolitical tensions and macro uncertainty. Wednesday’s Fed meeting It brought relief.
Fed Chair Jerome Powell adopted a more dovish stance, suggesting inflationary pressure may be only temporary, mainly due to potential tariffs during the Trump era. It opened up the possibility of future rate cuts. optimism in risk-on markets like crypto.
Bitcoin made a quick response, soaring 4.5% up to $85,786. It briefly reached $87,431. Ethereum and Solana followed suit with 4% & 6% respectively. Total crypto market capitalization grew 3%, to $2.947 billion, and futures markets experienced $355 million of liquidations, mainly from short positions.
Yesterday’s SEC statement confirmed that Proof-of-Work cryptocurrencies, such as Bitcoin Cash, Litecoin or Bitcoin Cash, will be exempt from current securities law.
When writing Bitcoin (BTCThe price of a coin () dropped by 2% within the last day, to $84,165.
Analysts are divided about the short-term path of Bitcoin, despite ETF inflows indicating a renewed demand for BTC exposure.
RJT_WAGMI notes that Bitcoin has reached a technical impasse, as it is testing the descending trendline and battling the Ichimoku Cloud. The analyst said that a break out of the zone would trigger a rally. However, if Bitcoin was rejected, this could lead to further downside.
Trader Great Mattsby gives a bigger view. noting that Bitcoin is still tracking within a long-term upward logarithmic trend channel, hinting the next major peak might not arrive until 2025-26 — so there could still be room to run.
CryptoQuant CEO Ki Young Ju also brings in a macro perspective. arguing While retail demand, particularly via ETFs is high, this doesn’t translate to the on-chain as it did in years past.
The tight liquidity conditions and the broader economic climate could make it take 6-12 months before Bitcoin reaches its highest point.
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Source: crypto.news
