Spot Bitcoin Exchange-Traded Funds (ETFs) See Positive Inflows Amid Market Recovery

Spot Bitcoin exchange-traded funds (ETFs) witnessed a significant turnaround as Bitcoin maintained its position above the crucial $85,000 support level. Analysts suggest this price point is pivotal for Bitcoin’s next upward movement.

Weekly Bitcoin ETF Inflows Signal Market Shift

Data from recent market analysis reveals that 12 spot Bitcoin ETFs reversed their trend of outflows, recording net inflows totaling $744.35 million during the week of March 17–21. This marks a notable shift after weeks of declining interest.

The daily breakdown of inflows showcases consistent positive momentum: $274.59 million on Monday, $209.12 million on Tuesday, $11.8 million on Wednesday, $165.75 million on Thursday, and $83.09 million on Friday.

Top Performers Among Bitcoin ETFs

Among the ETFs, BlackRock’s IBIT led the charge with inflows of $537.5 million, followed by Fidelity’s FBTC, which attracted $136.5 million. Other contributions came from ARK 21Shares’ ARKB ($79.5 million), Grayscale’s mini Bitcoin Trust ($23.9 million), and VanEck’s HODL ($11.9 million).

Despite the positive trend, not all ETFs benefited. Bitwise’s BITB, Invesco’s BTCO, Franklin Templeton’s EZBC, and Grayscale’s GBTC experienced combined outflows of $45 million, highlighting mixed investor sentiment across different funds.

Recovery After Weeks of Decline

This reversal in inflows is a welcome development after nearly $5.4 billion in outflows over the preceding five weeks. The earlier pullback was largely influenced by macroeconomic uncertainty, including tariff threats that unsettled markets and reduced risk appetite.

However, sentiment appears to be shifting. Recent developments, such as softened tariff threats and signals from the Federal Reserve regarding a pause in rate hikes, have eased fears of market instability.

Bitcoin Price Action and Key Levels to Watch

At the time of writing, Bitcoin is up 4.4% for the week, with a market cap of $1.72 trillion. The cryptocurrency is trading at $86,918 per coin, maintaining its bullish trajectory.

Analysts stress the importance of holding above the $85,000 level to sustain this momentum. Ryan Lee, chief analyst at Bitget Research, highlighted that a weekly close above $85K is critical to avoid a potential pullback to $76,000 while preserving the bullish market structure.

Technical Indicators Point to a Bullish Outlook

Markus Thielen from 10x Research noted in a recent report that Bitcoin’s reversal indicators are now bullish. The 21-day moving average currently sits at $85,200, a setup similar to those in September 2023 and August 2024, which preceded strong rallies.

“The technical backdrop has now reset to a point where a renewed uptrend could plausibly unfold,” Thielen stated.

As Bitcoin continues to stabilize above key levels, investors are closely watching for further signs of a sustained upward trend in the cryptocurrency market.

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