Bitcoin ETF: 10-Day Inflow Streak, Is Momentum Real?

Spot Bitcoin exchange-traded funds (ETF) in the U.S. recorded their tenth consecutive day of net inflows on Thursday.

The inflows reached $89 million in a single day, marking the longest positive streak since December.

Analysts believe this indicates sustained demand for Bitcoin exposure despite ongoing market volatility and investor caution.

Bitcoin ETFs Maintain Momentum with Continued Inflows

Bitcoin ETFs maintained steady inflows as institutions showed consistent interest, even without taking aggressive risk positions in the market.

The FBTC product of Fidelity recorded the largest $97.14 million inflow, solidifying its dominant position in the market.

The capital movement into BlackRock’s IBIT reached almost $4 million, which stands as evidence of ongoing investor backing.

Both Invesco’s BTCO and WisdomTree’s BTCW received negative funding, losing $7 million and $5 million, respectively.

Even though some funds experienced withdrawals, the positive trend continues because the net inflow data has remained positive for ten consecutive trading sessions.

The succession of 10 days with inflows into crypto investments during this period generated a total $1.06 billion increase, yet primary gains during January still exceeded these numbers.

Market participants recognize ETFs as a favorable approach for obtaining regulated Bitcoin exposure.

Regular deposits demonstrate institutional involvement that lacks robust speculation because they indicate enduring asset engagement.

Investors who change their asset distributions produce some rotation within ETF issuer groups because of variations in their fund flows.

Market Sentiment Remains Cautious Amid Price Rejection at Resistance

Bitcoin’s price has struggled to sustain recent highs and is trading down 1.5% in the past 24 hours.

When it attempted to advance above $89,000 to $90,000, it encountered resistance but could not surpass this rejection area.

The present market trend appears bearish because Bitcoin rests below its fundamental exponential moving averages of 20 days, 50 days, 100 days, and 200 days.

Analysts maintain a negative outlook as the Relative Strength Index (RSI) has slid below the 47.31 signal line to reach 46.54.

The market trend shows signs of slowing down because prices are moving towards oversold territory.

Technically, the MACD indicator reveals main and signal lines positioned at -627.83 and -1269.27, where the main line resides significantly underneath the signal line.

Moreover, the MACD histogram now shows a positive status at the 641.44 line, indicating a potential area where prices might stabilize.

Market actors maintain their attention because these technical formations show conflicting market emotions.

The combination of solid resistance barriers along with weakening momentum restrains market advancement over the near future.

Bitcoin Futures Surge as Open Interest (OI) Climbs

Futures market activity around Bitcoin has surged, with Open Interest (OI) nearing record highs at over $90 billion, according to Coinglass.

This growth indicates rising speculative interest and higher institutional involvement in Bitcoin’s derivatives space.

Open interest holds historical significance as it predicts market price volatility which heightens market reaction to price changes.

In contrast to Bitcoin, spot Ether ETFs have shown weaker investor confidence, with net outflows on most days since February 20.

The sentiment between the two biggest crypto assets diverged during that period based on recorded flows into the system, which occurred in only two days.

Ethereum investors appear to exhibit weaker conviction based on this market data reported by analysts.