Fund inflows into Bitcoin ETFs indicate renewed investor interest as Bitcoin price successfully surpassed the crucial $80,000 level, driven by more positive market sentiment following the ceasefire between the United States and Iran.
At the time of writing, Bitcoin price is at $81,077, up 0.06% since it opened early Wednesday in Asian trading.
US spot Bitcoin ETFs received a net inflow of about $532 million in a single day.
The largest funds came from BlackRock through its iShares Bitcoin Trust (IBIT) product, followed by Fidelity with its Wise Origin Bitcoin Fund (FBTC).
This inflow of funds actually continues the positive momentum for three consecutive days.
Before that, the market experienced an outflow of almost $490 million, indicating that investors were previously cautious.
In terms of price, Bitcoin is currently trading around $81,000 after surging above $80,000 for the first time in over three months.
This rise is not just due to normal demand, but is also driven by the phenomenon of ‘short squeeze’, where traders who bet on a drop in price are forced to buy back, thus pushing prices higher.
The level around $77,000 to $78,000 is now seen as an important support zone.
However, the real situation in the market is more complex. Crypto price movements are no longer entirely dependent on internal factors, but are also influenced by macroeconomic and geopolitical conditions.
For example, US military action in the Strait of Hormuz and Iran’s reaction can affect global investor sentiment.
In addition, economic data such as the US jobs report (Non-Farm Payrolls) and the Federal Reserve’s interest rate decision also play a big role.
If inflation remains high, interest rates may remain high for longer, which could depress the prices of risky assets such as crypto.
Conversely, if economic data is weak, investors may return to assets such as Bitcoin and technology.
Meanwhile, the Ether (Ethereum-based) ETF also recorded a recovery with inflows of around $61 million after several days of outflows in late April.
