Bitcoin ETF Inflows Make a Dramatic Turnaround

A huge $744.4 million in inflows were recorded to spot Bitcoin ETFs, the biggest in eight weeks. This also continued for six days, sending waves of confidence through the crypto community. They came from five different funds, each contributing a different amount. They included offerings by Blackrock and Fidelity.

All of this has followed a volatile period for global economics and Bitcoin. The Bitcoin price today has risen to $87,760 and has bucked the bearish trend indicative of 2025. This has been down to several factors, including global politics and the possibility of domestic trade tariffs in the US rescinding.

This volatility could be seen in the price of Bitcoin itself. Huge inflows were recorded in the run-up to January 17th, which pushed Bitcoin to a high of $109,000. However, after this date, it saw a drop to $78,000. Inflows and outflows of these ETFs have been a great indicator of how crypto may perform. In the former example, $1.96 billion in inflows were recorded in the third week of January followed by $1.76 billion the week after.

Ethereum is doing the opposite and is now in its fourth week of ETF outflows. The coin recently fell below the $2,000 mark for the first time in over a year. However, not all is lost. BlackRock’s BUIDL fund has continued to acquire Ether, adding $990 million in just over a week.

Bitcoin has shown further possible signs of a return to growth. It has begun a steady increase, pushing above the $83,500 resistance level. This formed a new resistance zone of $86,500, where it moved back down below the $85 level. There is now a bullish upward trend forming on the BTC/USD pairing. All of this is only going to push resistance levels up and when breached, it could see a further ascending run.

If Bitcoin does not move above the $86,500 zone, then it could signal a possible backtrack in the price. Losses below the $84,500 area could see a quick sell-off, plummeting it further down to $81,500. This makes it imperative to watch current levels and statistics, as well as keep an eye on global and economic affairs. There have also been prominent voices cautioning against the likelihood of a bull run that carries on. This is mainly due to further looming macroeconomic factors.

There are also some indicators that Bitcoin and the wider crypto market may be forming a bottom. This is the lowest point in a market's decline. Essentially, selling stops, and buying begins, resulting in an upward trajectory. It is the worst point in a market when something becomes so undesirable it turns into a positive buy for investors. Catching this turning point is when many people try to buy in, as opposed to predicting when the bottom occurs.

Part of this could be seen when Bitcoin dropped below $95,000. Analysts predicted a severe, correction, but this did not come. This shows confidence in the market. Further afield, rate cuts in the US seem to have been put back until later in the financial year. This is better for riskier assets, of which cryptocurrency is one. When rates are higher, people will tend to turn to riskier assets. When lower, they return to seemingly safe options like gold. There have also been positive comments on tariffs, which have been sending some economic uncertainty throughout global financial markets.

All this happened at a time when the United States SEC held its first cryptocurrency roundtable meeting last week. The main focus was on whether a crypto asset should be determined as a security. The SEC has a new crypto task force that will oversee the use of digital assets. The debate lasted for over four hours, with a panel of eleven advocates and sceptics giving their side of the argument.

All of this has given investors and the wider crypto market one big sign, and that is that crypto is becoming more accepted by traditional financial institutions. Talks like this at such as high level show how serious cryptocurrency and Bitcoin are being considered. This can only add to the long-term allure of Bitcoin as a viable long-term investment, which will see its price rise if the short-term volatility inherent in it can be ridden out.