Crypto ETFs Attract $590M Inflows, Bitcoin Holds Above $94,000

Bitcoin and the broader cryptocurrency market experienced minimal fluctuations over the past 24 hours, with exchange-traded funds (ETFs) tracking the asset attracting over $590 million in inflows on Monday. This marked the seventh consecutive day of inflows, the first such streak since late March. The inflows indicate a growing interest in Bitcoin as a safe-haven asset among investors.

BlackRock’s IBIT led the inflows with $970 million, while Ark’s ARKB saw an outflow of $200 million. Bitcoin maintained its position above $94,000 in the Asian morning hours on Tuesday, with traders suggesting that a break above this resistance level could pave the way for a move towards $100,000. Other major cryptocurrencies such as XRP, Ether (ETH), Cardano’s ADA, and BNB Chain’s BNB remained relatively stable, while Solana’s SOL experienced a 2% decline. Monero (XMR) dropped by 8.5% following a sudden 40% surge on Monday, which was attributed to a hacker swapping over $330 million of BTC to the privacy-focused token.

Among mid-cap cryptocurrencies, Nexo (NEXO) saw an 8% increase after announcing its return to the U.S. market following a two-year regulatory hiatus, with a focus on AI applications. Traders are closely monitoring upcoming data releases, including GDP and unemployment figures, for cues on market positioning. Overall market sentiment has been dampened by recent U.S. tariffs.

Jeff Mei, COO at BTSE, noted that Bitcoin and the broader crypto market have sustained gains from the previous week. He highlighted that traders are awaiting key economic data indicators set to be released in the U.S. this week, which could influence market movements. Mei also pointed out that the U.S. dollar has been weakening, with the widely-tracked dollar index down nearly 6% in the past month. This decline in the dollar's value has led institutional investors to diversify their holdings into other currencies, potentially driving demand for Bitcoin.

Some traders are observing a correlation between Bitcoin and the increase in M2 money supply, which is the total amount of money in an economy, including cash, checking accounts, savings accounts, and other easily accessible funds. An increase in M2 supply can lead to a rise in Bitcoin prices as people may buy BTC to protect their wealth from inflation. Conversely, a decrease in M2 supply could lead to a drop in Bitcoin prices as investors become more risk-averse.

Augustine Fan, head of insights at SignalPlus, suggested that Bitcoin is poised for a breakout as a delayed reaction to the increase in M2 money supply. However, he cautioned that there are many nuances to consider behind the data. Fan remains bullish on Bitcoin in the medium term due to expectations of monetary and fiscal easing in response to tariff-driven slowdowns.