Bitcoin exchange-traded funds (ETFs) recorded substantial net inflows of $254.46 million on Thursday, reflecting a resilience in the market despite some outflows that slightly dampened the positive momentum. This comes as Bitcoin struggles to maintain its position below the $68,000 threshold following a sharp increase observed on Wednesday.
On the same day, BlackRock made headlines by leading the charge with a significant inflow of $275.82 million, showcasing its continued confidence in the asset class. Among the 12 Bitcoin ETFs, three reported purchases, while two funds opted to liquidate their positions. The remaining ETFs chose to remain inactive during this period.
Despite these inflows, Bitcoin has seen a decline of 2.54% since Wednesday”s close, underlining the volatility that continues to characterize the market. In total, Bitcoin ETFs experienced inflows amounting to $342.8 million, with key players such as Bitwise and Grayscale also contributing to the buying spree, albeit with modest amounts of $69.01 million and $5.97 million respectively. However, this positive trend is somewhat offset by the $96 million in outflows from funds like Fidelity and Ark21Shares.
As of Thursday, Bitcoin ETFs have maintained a streak of three consecutive days of inflows, albeit with the overall monthly flow still in the negative, totaling a net outflow of $178.97 million for February. In stark contrast, the weekly flow has seen a positive net inflow of $814.86 million thus far.
The trading landscape remains active, with the total flows concluding Thursday reaching $54.83 billion, indicating a notable increase in trading volume compared to the previous two weeks, with still one day left in the trading week.
Despite the inflows into Bitcoin ETFs, the price of Bitcoin remains under pressure, having difficulty holding above $67,000 and aiming to revisit the $70,000 mark. A potential fakeout observed in the price action on Wednesday has yet to be invalidated. Market commentator Ted Pillows highlighted on social media that there is a risk of misinterpreting a breakout as a genuine trend reversal.
Another commentator, Willy Woo, weighed in on the current market dynamics, suggesting that while the selling pressure that drove Bitcoin below the $70,000 mark appears to be diminishing, any rebound towards the mid-$70,000 range could face resistance. Woo emphasized that the overall market sentiment remains bearish, with liquidity across both spot and futures markets deteriorating.
Despite the recent inflows into Bitcoin ETFs, the data indicates that the overall market sentiment may not support a robust price recovery. Over the past 30 days, approximately 9,711 BTC have entered centralized exchanges, with notable outflows of over 6,500 BTC in the last 24 hours. Exchanges such as Binance, Bitfinex, and Kraken have witnessed significant outflows, while Coinbase continues to serve as a primary custodian for Bitcoin held by U.S. citizens and institutions.
The current market activity underscores the ongoing volatility as investors navigate the complexities of the cryptocurrency landscape, with Bitcoin ETFs reflecting both the potential and challenges inherent in this dynamic asset class.
