After enduring a significant 20% price correction earlier this month when Bitcoin fell below $56,400 and saw increased outflows from the Bitcoin ETF market, the world's largest cryptocurrency managed to make a strong comeback. It broke through the key resistance level at $66,000, turning it into a new support zone.
BTC rebounds as Bitcoin ETF inflows surge
The resurgence in Bitcoin prices is closely related to the resurgence of capital inflows into the US spot Bitcoin ETF market. data According to Farside research, Spot Bitcoin ETFs had the best week of inflows in two months, with the US fund sector posting a total of $948 million in positive net inflows from May 13th to May 17th. I recorded it.
Interestingly, the majority of these inflows (approximately 89%) occurred in the last three business days of the week, according to industry analysts and researchers such as CoinShares' James Butterfill. We believe this is due to a change in investor sentiment.Be expected consumer price index (CPI) Wednesday report. Butterfill said:
This inflow was an immediate reaction to the weaker-than-expected CPI report and underscores our view that Bitcoin prices have recovered in line with interest rate expectations.
Regionally, Looking at the overall Bitcoin market, inflows from the US were overwhelming at $1.02 billion, but Switzerland and Germany also saw smaller inflows of $27 million and $4.2 million, respectively.
especially, grayscale bitcoin trusthas seen $16.6 billion in outflows since the first Bitcoin ETF was launched in January, but smaller inflows totaling $18 million.
Experienced not only in spot Bitcoin ETFs but also in the digital asset investment product space inflow According to CoinShares, the total amount was $932 million for the second week in a row. However, trading volume remained relatively low at $10.5 billion compared to March's $40 billion.
Is Bitcoin ready for more gains?
With renewed institutional investor interest in Bitcoin ETFs and the broader digital asset space, price recovery For major cryptocurrencies. With Bitcoin able to firmly hold the $66,250 support level and over 530,000 BTC traded at this price, analysts are confident that the asset has the potential to rise further.
according to Cryptocurrency analyst Ali Martinez said Bitcoin is likely to rise further in the coming days if the $66,000 support holds, adding to the bullish sentiment surrounding the market's largest cryptocurrency. He said it shows.
However, while Bitcoin has recovered above the crucial $66,000 level after its recent selloff, the leading cryptocurrency still faces significant challenges as it attempts to break out of its established trading range.
Crypto analyst Rekt Capital said: It pointed out Despite Bitcoin recording confirmation of bull flag breakout, Bitcoin secures daily close above $67,000 to continue high uptrend and confirm further upside potential It means there is a need.
The analyst further explain Bitcoin has been fluctuating between lows and highs between $60,000 and $70,000 for more than two months, a natural price movement process. As part of this, Recto Capital believes Bitcoin should be able to revisit the range high of $71,500 over time.
As of this writing, BTC is trading at $68,130, up a hefty 9% in the last week alone and over 8% over the past 14 days.
Featured image from Shutterstock, chart from TradingView.com
