Bitcoin Surges 6.5% to $106,800 as ETF Inflows Resume

Bitcoin's price has been on a steady ascent, approaching its all-time high as the spot premium remains stable and ETF inflows resume. The cryptocurrency has demonstrated resilience, trading around $106,800, marking a 6.5% gain from its previous levels. This upward trend is bolstered by the resumption of net inflows into Bitcoin spot ETFs, which recorded $386 million on Monday after two consecutive days of outflows. The stabilization of the spot premium has also played a crucial role in Bitcoin's price recovery, indicating a balanced market sentiment and contributing to the overall positive outlook for Bitcoin.

Despite a recent pullback, spot premiums remain healthy relative to historical levels at this price range. ETF demand has reignited, with Bitcoin’s price climbing in tandem—signaling renewed institutional interest. The rise in Bitcoin has been accompanied by a notable increase in open interest and heightened market activity over the past two days. However, volatility is likely to spike further in the coming 24 to 48 hours. Key catalysts include the release of U.S. Consumer Price Index (CPI) data, anticipation around potential developments from U.S.-China trade talks, and a surge in open interest, suggesting elevated positioning by market participants.

With both Bitcoin and stocks close to all-time highs, sharp price swings in either direction are possible. The combination of ETF inflows, rising open interest, and macroeconomic catalysts sets the stage for an eventful midweek trading session for Bitcoin and risk assets alike. The recent political turmoil did not deter Bitcoin's upward trajectory. Despite the uncertainty, Bitcoin demonstrated strong resilience, continuing its climb towards its all-time high. The cryptocurrency's price has been supported by various factors, including the resumption of ETF inflows and the stabilizing spot premium.

The total net assets across all 12 Bitcoin ETFs reached an all-time high of over $134 billion in late May, when Bitcoin hit an all-time high of $111,900. This significant milestone indicates the growing interest and investment in Bitcoin ETFs, further bolstering the cryptocurrency's price. The recent price movements and market dynamics suggest that Bitcoin's upward trend is likely to continue, as long as the spot premium remains stable and ETF inflows persist. Investors are closely monitoring the market for any signs of a potential pullback, but the current indicators point towards a bullish outlook for Bitcoin.