Bitcoin ETFs See $76.42M Inflow Amid Market Volatility

Spot Bitcoin ETFs experienced a significant inflow of $76.42 million on Tuesday, marking the second consecutive day of net inflows despite the ongoing market volatility. This influx follows Monday’s $1.47 million inflow, indicating a shift in institutional investor sentiment after a week of persistent outflows. The gradual return of investment into Bitcoin ETFs suggests renewed confidence in the cryptocurrency’s long-term prospects, even as short-term price volatility continues to affect the broader market.

BlackRock’s IBIT ETF was the standout performer of the day, attracting $38.22 million in new investment. This brought its cumulative net inflows to an impressive $39.64 billion. Ark Invest and 21Shares’ ARKB secured the second-highest daily inflow at $13.42 million, bringing the ETF’s historical net inflows to $2.60 billion.

The cryptocurrency market experienced a noticeable decline in trading activity over the past 24 hours, with the total market capitalization dropping by $40 billion. Bitcoin’s price fell by 3%, trading at $83,341 at press time. This price dip coincided with a 5% decrease in Bitcoin futures open interest, indicating a retreat from leveraged positions. The decline suggests traders are closing positions rather than opening new ones, with many exiting leveraged trades to avoid further losses or liquidations.

However, not all market signals point downward. Bitcoin’s funding rate has returned to positive territory at 0.0032%, showing that many futures traders are still opening long positions and expecting a recovery. The options market reveals more calls than puts for Bitcoin, suggesting bullish sentiment among options traders, as call options typically indicate bets on upward price movement.

Crypto analyst Dave the Wave, known for accurately predicting the 2021 Bitcoin crash, believes BTC is creating a durable base for the next bull market phase. He identified an inverse head-and-shoulders pattern forming on the daily chart, a traditionally viewed bullish reversal signal. This pattern suggests buyers are no longer waiting for the price to revisit recent lows before accumulating the asset. Dave the Wave projects Bitcoin will rally close to $89,000 before dropping to support at $77,000. After that, he expects a rally to a new all-time high above $110,000. He maintains that Bitcoin’s long-term uptrend remains intact despite bearish market sentiment, suggesting the current correction is nearing its end.

Recent data from the largest cryptocurrency exchange shows the Bitcoin Net Taker Volume has remained positive since April 11th. This metric measures the difference between taker buyer and taker seller volume. A positive value indicates taker buyers outweigh taker sellers on the platform. The consistently green values suggest futures traders are placing aggressive bullish bets. This shift toward positive sentiment coincides with Bitcoin’s recovery following news of a 90-day pause on tariffs for most countries. In related developments, the 30-day Bitcoin Market Value to Realized Value (MVRV) Ratio has hit its lowest level in six months. This indicator reflects the profit-loss status of Bitcoin investors. The declining MVRV suggests holder profitability has decreased. Historically, when this metric reached similar levels last year, Bitcoin formed a price bottom in both instances.

At the time of writing, Bitcoin is trading around $85,800, up more than 8% over the past seven days. This price action, combined with the ETF inflows and analyst predictions, provides a complex but cautiously optimistic picture of the market’s direction. The renewed interest in Bitcoin ETFs, despite the market dip, underscores the resilience of institutional investors and their belief in the cryptocurrency’s future potential. The bullish signals from analysts and on-chain data further support the notion that Bitcoin is poised for a recovery, despite the current volatility.