Spot Bitcoin ETFs are back in the green, recording a significant net inflow of $484 million this week. This impressive rebound comes after a Monday dip exceeding $85 million, showcasing investor resilience in the face of initial volatility.
Bitcoin ETF Weekly Rollercoaster
The week kicked off with a collective net outflow of over $85 million on April 1st. Grayscale’s GBTC led the outflows with a hefty $302 million, while BlackRock’s IBIT bucked the trend with a $165 million net inflow. Despite this initial setback, the cumulative net inflows for Spot Bitcoin ETFs remain impressive, reaching a staggering $12.04 billion – a testament to continued investor interest in Bitcoin.
The tide began to turn on Tuesday, with total net inflows reaching $39.47 million. While GBTC continued its outflows, IBIT and FBTC’s combined net inflows more than compensated, marking a shift in investor sentiment.
Wednesday saw a further decrease in outflows from GBTC, countered by significant net inflows from both IBIT and FBTC, propelling the total inflow for the day to a robust $113 million. This momentum continued through Thursday, with a cumulative net inflow of $213 million – the third consecutive day of positive inflows. This uptick right before the Bitcoin halving suggests strategic positioning by investors.
The week concluded on Friday with consistency, recording a net inflow of $203 million. Notably, BlackRock led the charge with $308.8 million, followed by Fidelity with $83 million. However, GBTC continued its outflows, totaling $198.9 million.
Bitcoin Price Responds Positively
Coinciding with the rebound in ETF inflows, the Bitcoin price has also gained traction, surging beyond $69,000. This 2.10% increase positions Bitcoin well for a potential test of its all-time high, as predicted by analyst Michaël van de Poppe. However, van de Poppe also cautions of a potential consolidation period following the climb.
Short Squeeze on the Horizon?
The price rebound was accompanied by significant short liquidations, as traders rushed to cover their positions and avoid further losses. This phenomenon could pave the way for a short squeeze, pushing the price even higher before a potential correction.
Looking Ahead
The resurgence in Bitcoin ETF inflows is a positive sign for the cryptocurrency’s future. With the Bitcoin halving looming, investor interest is likely to remain high. Whether Bitcoin will reach a new all-time high or experience consolidation remains to be seen, but one thing is clear: the market is primed for continued excitement in the coming weeks.
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