Bitcoin ETFs Surge: $755M Inflows Push BTC Past $100K
Bitcoin ETFs soared with $755M inflows Wednesday, driven by Fidelity’s $463M surge, pushing Bitcoin briefly above $100K.
Outlines:
- Bitcoin ETFs Inflows Surge
- Institutional Demand Returns
- Macro Factors Boost Bitcoin
- Bitcoin’s Key Drivers
- Bitcoin’s Volatility and Outlook
Bitcoin ETFs jumped significantly on Wednesday, with inflows reaching $755 million after December’s core CPI decreased.
Fidelity’s FBTC led the surge with $463 million in inflows, bringing Bitcoin past $100,000. Four days of outflows have finished, with institutions returning to Bitcoin as the macroeconomic outlook improves.
Fidelity’s Bitcoin ETF was the highest performer, with inflows totaling 7,548 BTC, more than 16 times the daily production of 450 BTC. Ark Invest’s ARKB raised $138 million, while BlackRock’s iShares Bitcoin Trust (IBIT) received $31 million. BlackRock also established a new Bitcoin ETF on CBOE Canada, indicating worldwide demand for Bitcoin products is increasing.
CPI Decline Sparks Broader Market Optimism, Boosting Bitcoin ETFs
The December CPI was 2.9% as expected, and the core CPI was 3.2% vs 3.3% expected. The miss triggered a broad market rally, with the S&P 500 up over 100 points and $900 billion in market cap added during the day.
Bitcoin’s rally is driven by macroeconomic factors and institutional investors returning to the market. According to Hunter Horsley, CEO of Bitwise Invest, global demand for Bitcoin ETFs remains strong, with inquiries from various countries.
Key drivers of the Bitcoin price increase include:
- \tInstitutional Accumulation: After a short stasis in late December, wallets holding above 10 BTC began accumulating.
- Retail traders are withdrawing profits, resulting in fewer non-empty wallets.
Can Bitcoin ETFs Drive Sustained Momentum Above $100K?
- At the time of writing, Bitcoin was trading at $99,597, up 2.34% from the previous day’s high of $100K. Trading volumes rose 5.38% to $58 billion, indicating high market activity. However, volatility remains, with 24-hour liquidations reaching $83 million, including $58 million in short liquidations, according to Coinglass.
- Analysts believe the rally will continue, fueled by good fundamentals and institutional inflows. Blockchain data shows that key actors are increasingly confident in Bitcoin’s long-term prospects, as it gains momentum.
What Does This Mean for the Crypto Market And Investors
Bitcoin ETFs Play a pivotal role in driving institutional inflows, signaling renewed confidence in crypto assets. With Bitcoin surpassing $100K amid improving macro conditions, investors gain optimism about market stability and growth potential. This momentum could attract broader adoption, encouraging long-term investment strategies and increased participation in the crypto market.
