Bitcoin ETF Inflows Soar To Highest Level In Months As BTC Price Surges Past $68,000

After
enduring
a
significant
20%
price
correction
earlier
this
month
that
saw
Bitcoin
fall
below
$56,400
and
increased
outflows
from
the
Bitcoin
ETF
market,
the
world’s
largest
cryptocurrency
has
managed
to
stage
a
strong
comeback.
It
has
broken
above
the
key
$66,000
resistance
level
and
turned
it
into
a
new
support
zone.

BTC
Bounces
Back
As
Bitcoin
ETF
Inflows
Soar 

The
resurgence
in
Bitcoin’s
price
has
been
closely
tied
to
a
rekindling
of
inflows
into
the
US
spot
Bitcoin
ETF
market.


Data

from
Farside
shows
that
spot
Bitcoin
ETFs
saw
their
best
inflow
week
in
two
months,
with
the
US
fund
category
collectively
notching
$948
million
in
positive
net
flows
from
May
13
to
May
17.

Interestingly,
the
majority
of
these
inflows,
approximately
89%,
occurred
in
the
last
three
trading
days
of
the
week,
which
industry
analysts
and
researchers
such
as
James
Butterfill
of
CoinShares
attribute
to
a
shift
in
investor
sentiment
following
the
release
of
a
lower-than-expected


Consumer
Price
Index

(CPI)
report
on
Wednesday.
Butterfill
stated:

The
inflows
were
an
immediate
response
to
the
lower-than-expected
CPI
report,
highlighting
our
view
that
Bitcoin
prices
have
recoupled
to
interest
rate
expectations.

Related
Reading

Regionally,
in

terms
of
the
overall
Bitcoin
market,
the
US-dominated
inflows
with
$1,002
million,
while
Switzerland
and
Germany
also
saw
small
inflows
of
$27
million
and
$4.2
million,
respectively. 

Notably,
the


Grayscale
Bitcoin
Trust,
which
has
seen
outflows
of
$16.6
billion
since
the
launch
of
the
first
Bitcoin
ETF
in
January,
saw
small
inflows
totaling
$18
million.

Beyond
just
spot
Bitcoin
ETFs,
the
digital
asset
investment
product
space
experienced


inflows

for
the
second
consecutive
week,
totaling
$932
million,
according
to
CoinShares.
However,
trading
volumes
remained
relatively
low
at
$10.5
billion,
compared
to
the
$40
billion
seen
in
March.

Bitcoin
Poised
For
Further
Gains?

The
renewed
institutional
interest
in
Bitcoin
ETFs
and
the
broader
digital
asset
space
has
coincided
with
a
strong


price
recovery

for
the
leading
cryptocurrency.
Bitcoin’s
ability
to
firmly
hold
the
$66,250
support
level,
with
over
530,000
BTC
traded
at
this
price,
has
given
analysts
confidence
in
the
asset’s
potential
for
further
gains.

According

to
crypto
analyst
Ali
Martinez,
if
the
$66,000
support
holds,
Bitcoin
could
see
strong
potential
for
further
gains
in
the
coming
days,
demonstrating
the
bullish
sentiment
surrounding
the
largest
cryptocurrency
on
the
market. 

However,
while
Bitcoin
has
managed
to
bounce
back
above
the
crucial
$66,000
level
after
the
recent
pullback,
the
leading
cryptocurrency
still
faces
a
critical
test
as
it
attempts
to
break
out
of
its
established
trading
range.

Related
Reading

Crypto
analyst
Rekt
Capital
has


pointed
out

that
despite
Bitcoin
recording
a
bull
flag
breakout
confirmation,
the
asset
still
needs
to
secure
a
daily
close
above
$67,000
to
continue
its
trend
of
higher
highs
and
confirm
the
potential
for
further
upside. 

The
analyst
further


explains

that
Bitcoin
has
been
oscillating
between
its
low
and
high
range
between
$60,000
and
$70,000
for
over
two
months,
a
natural
consolidation
process.
As
part
of
this,
Rekt
Capital
believes
that
Bitcoin
should
be
able
to
revisit
the
range
high
of
$71,500
over
time.

At
the
time
of
writing,
BTC
is
trading
at
$68,130,
up
a
substantial
9%
in
the
last
week
alone
and
over
8%
in
the
last
fourteen
days. 

Featured
image
from
Shutterstock,
chart
from
TradingView.com