Bitcoin ETFs See $2.72 Billion Inflows as Price Hits $118,780

US-based spot Bitcoin ETFs achieved a significant milestone by recording over $1 billion in inflows for two consecutive days, marking the first time since their launch in January 2024. On Friday, the 11 spot Bitcoin ETF products saw total inflows of $1.03 billion, following $1.17 billion in inflows the previous day. This surge in inflows is notable as it represents the second and third instances of ten-digit inflows since the ETFs' inception, with the last occurrence being on January 17, 2024, when $1.07 billion was recorded.

The inflows on Thursday were the second-largest daily inflow since the ETFs' launch, surpassed only by the $1.37 billion recorded on November 7, 2024, following Donald Trump's victory in the US presidential election. The demand for Bitcoin ETFs has been exceptionally high, with spot Bitcoin ETFs buying around 10,000 Bitcoins on Thursday, compared to the 450 Bitcoins produced by the Bitcoin network on the same day. This demand was 22 times greater than the daily mined supply, highlighting the intense interest from investors.

The week was particularly strong for spot Bitcoin ETFs, with a total of $2.72 billion in inflows over five days. This period saw Bitcoin's spot price hit fresh all-time highs of $112,000 on Wednesday and continued climbing to reach $118,780 on Friday. The price surge led to BlackRock’s spot Bitcoin ETF (IBIT) crossing $80 billion in assets under management (AUM) on Thursday, making it the fastest ETF to reach this milestone in just 374 days. This achievement underscores the rapid growth and institutional adoption of Bitcoin ETFs.

The significant inflows into Bitcoin ETFs reflect a broader trend of institutional interest in Bitcoin. The supportive regulatory environment, driven by crypto-friendly policies from the Trump administration, has boosted investor confidence. The establishment of a national crypto reserve and the appointment of pro-crypto voices to key positions have further contributed to the positive sentiment surrounding Bitcoin. This environment has led to a powerful shift in momentum, with traders repositioning themselves in anticipation of further price increases.

The liquidation of short positions has also played a role in the rally, with over $1.14 billion in leveraged crypto positions liquidated in 24 hours. Bitcoin alone accounted for $599 million in liquidations, indicating a significant shift in market sentiment. This liquidation has added fuel to the rally, as traders reposition themselves in anticipation of further price increases. The latest rally caught traders off guard and triggered the highest wave of liquidations in years, signaling a powerful shift in momentum.

As of 05:55 am ET, Bitcoin had broken past the earlier high of $113,734 set just hours prior. The world’s largest cryptocurrency is now up roughly 24% year-to-date, with analysts eyeing $130,000 as the next key level. The latest price spike came as market structure turned decisively bullish, according to 10X Research. Traders Rush to Reposition After Quiet Volatility Triggers Bullish Setup In a note to clients, the firm said a short-term breakout signal had been triggered, historically followed by median gains of 20%. That would imply a price target near $133,000 by September. The Crypto Fear & Greed Index is now in the "Greed" zone after $BTC hit a new ATH earlier today. “Our trading signals indicate that this short-term breakout carries a 60% probability of further upside over the next two months,” Markus Thielen, founder of 10X, told Cryptonews. Behind the scenes, the landscape has been quietly shifting. Implied volatility recently hit its lowest levels in months, giving traders cheap access to upside bets. At the same time, many had been underexposed following June’s options expiry, leading to a scramble to reposition. Over $1B in Short Positions Liquidated as Bitcoin Blasts Higher Adding fuel to the rally, over $1.14b in leveraged positions were liquidated in the past 24 hours alone, according to data from CoinGlass. Of that, nearly $1.02b came from short traders. Bitcoin accounted for more than half of the total carnage, with $599m in liquidations. Ethereum saw $243m wiped out, while smaller tokens like Hyperliquid, Solana and XRP also saw heavy losses. Source: Coinglass Trump Policies, $15B in ETF Buys Add Fuel to Bitcoin’s Fire This new wave of volatility comes as Trump’s crypto-friendly policies gain traction. In March, the president signed an executive order to establish a national crypto reserve. His administration has since appointed pro-crypto voices to key positions, including SEC’s Paul Atkins and AI policy lead David Sacks. Meanwhile, Trump-linked businesses are deepening their involvement. Trump Media & Technology Group recently filed to launch a crypto ETF that would hold multiple tokens, including Bitcoin. With steady ETF demand, easing macro conditions and regulatory tailwinds, many traders now see this breakout as the start of a broader uptrend. “Bitcoin may be transitioning into a higher trading range,” said Thielen. “Since mid-April, Bitcoin ETFs have bought $15b worth of BTC and they are causing prices to rally.” As crypto markets heat up once again, all eyes are on next week’s US CPI print and the start of “Crypto Week” in Washington, both of which could offer fresh catalysts, or risks, for the world’s most closely watched digital asset.