Spot Bitcoin exchange-traded funds (ETFs) saw net inflows of nearly $1 billion last week, marking their best performance in more than three months as market sentiment shifts toward risky assets.
Data from SoSoValue can be seen last week, these spot Bitcoin (BTC) ETFs attracted $996 million in total net inflows, the highest weekly inflow since early January, when inflows reached about $1.4 billion.
$663.9 million flowed in on Friday, the highest single-day tally this week. Early gains included $411.5 million on Tuesday and $186 million on Wednesday, followed by a more modest $26 million on Thursday. The period began on Monday with an outflow of $291 million.
Total net assets in Bitcoin spot ETFs rose above $101 billion by Friday as trading activity surged, with daily volumes reaching nearly $4.8 billion.
Related: Morgan Stanley’s Bitcoin Fund overtakes WisdomTree after 6 trading days
Market price in de-escalation
According to Bitunix analysts, markets are increasingly pricing in the evolution of geopolitical tensions, not whether they will persist. Signs of de-escalation, especially in the U.S.-Iran relationship, have reduced extreme risk scenarios, weakening demand for time-honored safe and sound havens such as the U.S. dollar, they said.
Analysts added that the Federal Reserve continues to take a cautious approach and expectations for interest rate cuts remain confined. At the same time, concerns about US debt demand and high long-term yields are starting to erode confidence in time-honored “risk-free” assets. This contributed to additional pressure on the dollar, further supporting the inflow of alternative assets, including Bitcoin.
“In the cryptocurrency market structure, BTC is currently in a classic liquidity redistribution phase,” they wrote, adding that Bitcoin continues to trade in a range, with resistance above $75,000 and support near $72,000. “Liquidation heat maps suggest that the market is building a new equilibrium range rather than extending its directional trend,” they said.
Related: Three Things Bitcoin Needs to Do to Maintain Highs Above 76K dollars: Analysts
Bitcoin surges as Strait of Hormuz reopens
On Friday, Iran’s foreign minister announced that the Strait of Hormuz had reopened to commercial shipping for the duration of the current ceasefire, a move quickly confirmed by US President Donald Trump. The decision eased immediate concerns about supply disruptions on one of the world’s most crucial oil transit routes, prompting quick reactions in global markets.
Following the news, the price of Bitcoin rose above $77,000, while Brent crude oil fell by about 10% to about $85 a barrel.
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