Bitcoin (BTC) bulls are back in control, surging past $73,000 after a record-breaking day for spot Bitcoin exchange-traded funds (ETFs). The price jump follows a brief dip on Tuesday caused by a $360 million liquidation event, but the tide has turned dramatically.
The key driver behind this renewed optimism seems to be a historic day for Bitcoin ETFs. Data from BitMEX Research reveals that spot Bitcoin ETFs amassed a staggering 14,706 BTC, translating to over $1 billion in net inflows on Tuesday alone. This surpasses the previous record of $673 million set in February, signifying a massive surge in institutional interest.
Blackrock, a leading investment giant, spearheaded the inflows, contributing a record $849 million. Interestingly, Grayscale, a prominent player in the Bitcoin investment space, led the outflow side with $79 million. Nevertheless, the overall inflows have pushed the total figure past the $4 billion mark, indicating a strong appetite for Bitcoin among major institutional players.
Market analysts like Alex Kuptsikevich, a senior market analyst at FxPro, view this price action as a potential sign of institutional buying. He noted in an email to CoinDesk, “The intraday nature of the move is reminiscent of the behavior of large institutional traders.” This suggests the involvement of sophisticated trading algorithms and retail investors following the lead.
Also Read: Will Bitcoin Crash Before Halving? Experts Say 20% Dip Possible, But Bullish on $1 Million Long Term
Despite the brief dip, the overall sentiment remains bullish among professional investors. Some even anticipate a “sell-side crisis” later this year as ETF buying continues to climb, potentially squeezing out available supply. This bullish outlook, coupled with record ETF inflows, paints a bright picture for Bitcoin in the near future. However, only time will tell how long this momentum can be sustained.
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