"Money Poured In with Truce"...Bitcoin ETF Surges $500 Million

▲ Bitcoin Spot ETF

Bitcoin (BTC) regained the $80,000 mark as risk-on sentiment recovered following the truce between the US and Iran, with US spot Bitcoin ETFs seeing a net inflow of $532.21 million in a single day.

Cointelegraph reported on May 5 (local time) that US spot Bitcoin ETFs recorded a net inflow of $532.21 million on May 4 alone. By product, BlackRock's IBIT saw the largest inflow at $335.49 million, followed by Fidelity's FBTC with $184.57 million. Morgan Stanley's MSBT also recorded a net inflow of $12.16 million, while other products had no additional inflows.

This inflow of funds extended the net inflow trend for three consecutive trading days. Previously, $629.73 million flowed in on Friday and $14.76 million on Thursday. This reversed the trend from the previous three trading days, during which a total of $490.63 million flowed out. Cointelegraph reported that Bitcoin surpassing $80,000 again after about three months stimulated the capital inflow.

The market attributes the current rebound to the recovery of risk-on sentiment after the truce. Bitfinex analysts analyzed that Bitcoin broke through psychological resistance as short-sell liquidity liquidations concentrated in the $79,500 to $81,000 range. They added that the $77,000 to $78,000 range is acting as a key support level for leveraged long positions.

However, the macroeconomic environment and geopolitical variables remain a burden. Cointelegraph reported that the US launched 'Operation Freedom,' deploying 15,000 troops to protect shipping lanes in the Strait of Hormuz, and Iran warned that this could destabilize the truce. In addition, this week's US non-farm payroll data and Federal Reserve statements were identified as variables that will determine the direction of risk assets in general. The analysis suggests that if inflation concerns persist, the possibility of prolonged high interest rates increases, and conversely, if indicators are sluggish, funds may rotate into tech stocks and digital assets.

Ethereum spot ETFs also showed a rebound. The net inflow on May 4 alone was $61.29 million, and on the previous Friday, $101.18 million flowed in. Cointelegraph reported that the cumulative net inflow into Ethereum spot ETFs has exceeded $12 billion. With funds flowing into both Bitcoin and Ethereum spot ETFs simultaneously, it is interpreted that the virtual asset market has entered a phase where it reacts more significantly to macroeconomic variables and liquidity structures than to internal supply and demand.

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