Quick Facts

• Bitcoin ETF inflows rebound to 6-week highs
• BTC price recaptures $97,000 level

Bitcoin ETF Inflows Rebound to Six-Week Highs as BTC Price Recaptures $97,000 Level

The first Wall Street trading week of the new year has come to a close, and Bitcoin is radiating a starkly different energy compared to its opening bell performance. Despite this shift, the crypto’s price action still needs to persuade wary traders to revisit their positions.

What’s Driving the Rebound?

Several factors have likely contributed to the Bitcoin ETF inflows rebound. For one, the rising adoption of decentralised finance (DeFi) and non-fungible tokens (NFTs) has drawn in institutional investors who are now eyeing the exposure offered by Bitcoin ETFs. These funds enable these investors to gain access to the cryptocurrency market while mitigating counterparty risk associated with direct trading.

The Shift in Market Mood

The initial trading week of the year has witnessed a stark contrast in market sentiment between the start and the end of the week. On Monday, Bitcoin’s price struggled to break above the psychological barrier of $90K, and the overall mood among traders was tense and cautionary.

The Role of ETFs in the Market

The importance of ETFs cannot be overstated in the Bitcoin market. By providing a liquid and accessible way for investors to gain exposure to Bitcoin, ETFs have become a critical factor in driving market demand and price discovery.

What’s Next for the Market?

Given the current market conditions and the rebound in Bitcoin ETF inflows, there are several possibilities for the price of Bitcoin in the near term.

On one hand, the growing institutional interest and improved market sentiment could continue to drive the price upwards. If this trend persists, it’s possible that Bitcoin could eventually break above the psychologically significant barrier of $100K.

On the other hand, it’s also possible that the recent price action may be simply a corrective bounce within a larger bearish trend. If this is the case, a pullback to the recent lows of around $85K could be on the cards.