Bitcoin Soars 93% in Daily Volume as Spot ETFs See Record $673 Million Inflow

Bitcoin

Bitcoin (BTC) continued its recent bullish run, briefly surpassing $64,000 before settling around the $62,000 mark. This surge coincided with record-breaking net inflows and trading volumes in U.S. spot Bitcoin ETFs, highlighting renewed investor interest in the world’s leading cryptocurrency.

The recent surge in Bitcoin price is largely attributed to the rising popularity of spot Bitcoin ETFs, which allow investors to gain exposure to the cryptocurrency without directly owning it. These ETFs have witnessed significant inflows, with a record-breaking $673 million net inflow on February 28th, surpassing the previous high of $655.2 million set in January.

BlackRock’s IBIT ETF led the charge with the highest daily inflow yet, followed by Fidelity’s FBTC and ARK Invest 21Shares’ ARKB. Notably, Grayscale’s GBTC, which is not a spot ETF, saw outflows of $216.4 million on the same day.

Also Read: US govt Moves $922 Million in Seized Bitcoin as Price Surpasses $60,000: Coincidence or Calculated Move?

Bitcoin Price Volatility Triggers Crypto Liquidations

The volatile nature of Bitcoin’s price movement resulted in substantial liquidations of leveraged positions across the crypto market. As of February 29th, short positions worth $435 million were liquidated in the past 24 hours, exceeding long liquidations of $364 million. This trend continued during the New York trading session, with a total of $683 million liquidated within 24 hours, split evenly between long and short positions.

Bitcoin Faces “Literally No Resistance” Ahead

Analysts remain optimistic about Bitcoin’s future, citing the lack of significant resistance levels above the current price point. Independent analyst Ali highlighted IntoTheBlock’s IOMAP chart, indicating a strong support zone between $54,300 and $56,200, where a vast number of addresses hold Bitcoin. Additionally, the weekly chart suggests this support level has historically served as a springboard for price increases.

While technical indicators like the RSI and upward-trending moving averages suggest continued buyer dominance, Ali warns of potential short-term corrections based on a sell signal on the TD Sequential indicator.

The recent surge in Bitcoin price and record-breaking activity in spot Bitcoin ETFs point towards a growing appetite for the cryptocurrency among investors. While short-term volatility remains a concern, analysts are generally bullish on Bitcoin’s long-term prospects, citing the lack of resistance and technical indicators.

About The Author