Bitcoin has experienced a notable surge of 4.6% within the last 24 hours, successfully surpassing the US$90,000 threshold. Despite this recent uptick, the cryptocurrency remains nearly 20% lower on a monthly basis, highlighting the ongoing volatility in the market.
At present, the price of one BTC stands at US$91,546 (AU$140,221). Other major cryptocurrencies have mirrored Bitcoin”s upward movement, with Ethereum (ETH) increasing by 2.7% to trade at US$3,039 (AU$4,654), Solana (SOL) rising by 2.8%, and XRP gaining 1.4%.
In terms of exchange-traded fund (ETF) trends, Ethereum ETFs have reported strong inflows, accumulating a total of US$241.5 million over four consecutive days. This marks a significant turnaround after an extended period of net outflows, during which US$1.2 billion left these funds. Conversely, Solana ETFs faced their first net outflows recently, with US$8.2 million exiting across five US funds.
Analysts are interpreting the current market dynamics as indicative of a “low-conviction consolidation” phase. According to recent analyses from Glassnode, the market is characterized by fragile support, with many short-term holders realizing substantial losses. This situation is compounded by thinning market liquidity and early signs of cooling among long-term holders.
Amidst this backdrop, the sentiment remains cautious. Various positioning indicators across futures and options markets reflect a defensive posture, with reduced leverage and heightened volatility. Analysts note that any recovery will necessitate reclaiming significant cost-basis models along with renewed inflows.
Moreover, derivatives data suggests that the recent price volatility is largely attributed to a leverage unwinding process rather than a fundamental trend shift. One analyst from CryptoQuant remarked that the market has just witnessed the largest drop in open interest during the current cycle, interpreting this as a major leverage washout rather than signaling the onset of a bear market.
As Bitcoin continues to navigate these turbulent waters, investors and analysts alike are keeping a close eye on ETF flows and market sentiment, which will be crucial in determining the near-term trajectory of the leading cryptocurrency.
