Bitcoin exchange-traded funds (ETFs) made a remarkable comeback on Monday by recording $561.9 million in net inflows, their strongest single-day performance since January, reversing a four-day streak of outflows. This turnaround highlights increasing investor confidence despite ongoing Bitcoin price volatility.
Tracking Bitcoin’s Price and Market Trends
Bitcoin’s price saw significant fluctuations on Monday. It dipped to $75,000 earlier in the day before rebounding to approximately $78,500, still far below its early October peak of $126,000. Although the cryptocurrency climbed by 3% following a nine-month low, it remains 39% below its all-time high. Analysts point to a lack of clear catalysts for a sustained price recovery. Key support levels, such as the 200-week moving average, are being closely monitored by market experts like Alex Thorn of Galaxy Digital.
Spot Bitcoin ETFs Lead the Recovery
Among U.S.-listed Bitcoin ETFs, Fidelity’s FBTC stood out with inflows of $153.4 million on Monday. Other significant players included BlackRock’s IBIT, which secured $142 million, and Bitwise’s BITB, which gained $96.5 million. Products from Grayscale, Ark & 21Shares, VanEck, Invesco, and WisdomTree also posted positive inflows. This recovery follows weeks of outflows, with ETFs shedding $1.49 billion last week and $1.33 billion the week prior.
In contrast, spot Ethereum ETFs recorded net outflows of $2.86 million on the same day, reflecting differing investor sentiment between the two leading cryptocurrencies.
Analysts’ Insights: Short-Term Volatility, Long-Term Opportunities
While short-term price action remains unpredictable, analysts are offering hope for long-term investors. Bernstein analysts suggest that Bitcoin could find support around its prior cycle high of $60,000 before staging a recovery, possibly within the first half of the year. They also cite strong institutional participation and the absence of miner-driven capitulation as positive indicators for the cryptocurrency’s resilience.
Meanwhile, policy dynamics in the U.S., including discussions on a Strategic Bitcoin Reserve and Federal Reserve leadership changes, could serve as long-term catalysts for Bitcoin’s price recovery.
Consider Adding Bitcoin to Your Portfolio
If you’re considering entering the cryptocurrency market, Fidelity’s FBTC Bitcoin ETF is a popular option for diversifying your investment strategy. This ETF provides exposure to Bitcoin without requiring direct ownership of the cryptocurrency, offering a convenient and regulated way to participate in the market.
Keep up with the latest developments in the crypto space to make informed investment decisions. With Bitcoin’s historical recovery patterns and increasing institutional involvement, this could be an opportune time for long-term investors to explore their options.
