Bitcoin Surges 7.68% Amid Market Volatility, Spot ETF Inflows Hit $913M

Bitcoin has recently shown resilience amidst broader financial market volatility, with a 7.68% increase over the past 30 days. This performance stands in stark contrast to the S&P 500 and Nasdaq, which have declined by 6.79% and 8.14% respectively during the same period. Analysts from Bitfinex have noted that while Bitcoin's relative strength is evident, it remains to be seen whether this trend will persist. They caution that Bitcoin has previously shown short-term outperformance only to eventually align with broader market trends.

Bitfinex analysts suggest that Bitcoin's current strength could be indicative of a potential "regime change" if it maintains its performance through upcoming economic indicators and market volatility. The analysts highlight that Bitcoin's recent gains have been driven by a combination of macroeconomic risks and increased inflows into spot Bitcoin ETFs. On April 22, spot Bitcoin ETF inflows reached $913 million, the highest since late January. This influx has reinforced Bitcoin's position as a strong store of value, with its dominance rising to levels not seen since late 2021.

The current crypto market is described as a "hybrid state," characterized by rising macroeconomic risks and increasing spot Bitcoin ETF inflows. This environment favors Bitcoin as the "cleanest shirt in the dirty laundry," according to Bitfinex analysts. They attribute the decline in Nvidia's stock, which has outperformed Bitcoin over the past decade, to regulatory and tariff-driven volatility. Swan Bitcoin CEO Cory Klippsten has stated that there is a "near zero chance" of Nvidia outperforming Bitcoin over the next 10 years.

Crypto market participants are closely monitoring the upcoming Consumer Price Index (CPI) data, scheduled for release on May 13. March's CPI data showed a cooling trend, which some analysts interpreted as a short-term bearish signal for Bitcoin. However, other indicators suggest that Bitcoin's rally may not be sustainable. Markus Thielen, head of research at 10x Research, has expressed caution about the current Bitcoin rally, citing the stablecoin minting indicator, which has not yet returned to high-activity levels.