Bitcoin Surges 25% as $1.4 Billion Flows into U.S. ETFs

Bitcoin has experienced a significant surge in value, rising over 25% since the 7th of April. This increase has been driven by a record $1.4 billion in inflows into U.S. spot Bitcoin ETFs over just three days. This influx of capital has brought the price of Bitcoin close to $100,000, reigniting discussions about whether this milestone is within reach.

The substantial ETF inflows indicate a growing institutional interest in Bitcoin. On Tuesday alone, Bitcoin ETFs recorded $936 million in net inflows, marking the third-largest daily surge of the year. Over three days, the total inflows reached $1.4 billion, the second time weekly inflows have topped $3 billion, a level last seen post-election in late 2024. This surge in inflows represents a stark reversal from the sluggish March flows, with daily net inflows swinging sharply positive and weekly fund flows hitting levels not seen since Bitcoin’s ascent to previous all-time highs.

This surge in Bitcoin's price and the corresponding ETF inflows suggest a shift in investor perception. Traditionally, Bitcoin has been closely tied to risk assets like tech stocks. However, recent trends show that Bitcoin is decoupling from these assets and emerging as a safe haven. This shift is evident as Bitcoin surges ahead while stocks and other risk-on assets falter under macroeconomic pressure. Pro-crypto policies under the current administration and rising institutional accumulation further support this narrative, indicating a deliberate rotation into Bitcoin.

The sequence of events—massive ETF inflows preceding price liftoffs—suggests that institutional demand is driving the current rally. Since the bottom on the 7th of April, Bitcoin has surged from below $75,000 to touch $94,000. The clean, near-vertical candles since mid-April support this observation. With Bitcoin now consolidating just shy of $95,000, the case builds that institutional demand is no longer just reactive but proactive. This rally has different fingerprints, and $100,000 is flashing on the radar.