Bitcoin Drops 2.5% As Fear Index Hits 29, ETFs See $56.38M Inflows

The Bitcoin market has been gripped by fear as the BTC Fear and Greed index has entered the red zone, currently standing at 29. This shift in sentiment coincides with a 2.5% drop in the price of Bitcoin, which has fallen from $85,830 to $83,812. Traditionally, the fear zone, particularly the extreme fear zone, indicates that investors are worried, which can present a buying opportunity that may precede a price surge. Conversely, the greed and extreme greed zones suggest that the market is overheated and moving toward a correction.

Despite the market's fear, there are signs of bullish sentiment among investors. On-chain analytics account @lookonchain has reported that Bitcoin ETFs have resumed positive inflows. After experiencing outflows for the entirety of last week, these exchange-traded funds that track the Bitcoin price are now seeing inflows again. The total netflow has comprised 672 Bitcoins, or $56.38 million. However, out of 10 ETFs, just four have seen fresh Bitcoins come in. BlackRock leads the way here, with 455 BTC inflows, equivalent to $38.16 million. Currently, this largest corporate Bitcoin owner holds 571,869 BTC worth $40.01 billion. These ETFs are piling up Bitcoin to back their ETF shares sold to investors.

Ark21 Shares and Bitwise ETFs have absorbed 160 BTC and 131 BTC, respectively. The last of the four ETFs with positive inflows today has been Franklin, with 58 BTC. Valkyrie and Invesco Galaxy have faced outflows of 19 BTC and 104 BTC, respectively. This influx of capital into Bitcoin ETFs suggests that institutional investors remain optimistic about the long-term prospects of Bitcoin, despite the current market volatility.