Renewed Investor Interest Pushed Bitcoin (BTC) to its Highest Daily Close in 5 Weeks: Bitfinex

Flows into the U.S. spot Bitcoin exchange-traded fund (ETF) market have reversed following a period of outflows and minimal inflows.

According to the Bitfinex Alpha report, the new trend of heavy net inflows into spot Bitcoin ETFs signals renewed interest in the products and investors’ belief in the digital asset’s potential.

Bitcoin ETF Flows Reverse

Last week, spot Bitcoin ETFs saw a collective net inflow of $948.3 million. Compared to the $228.5 million inflows recorded the week before, this figure was proof of substantial investments. Interestingly, last week witnessed no outflows, while the one before saw investors withdraw up to $111.7 million from the products.

The reversal in ETF flows coincides with BTC’s bullish trajectory, which saw the asset record its highest daily close in five weeks. Bitcoin witnessed a significant rebound from its range lows and registered a significant uptick on May 15, primarily driven by favorable regulatory developments and a softer-than-expected Consumer Price Index report in the U.S.

“This interplay between macroeconomic indicators and Bitcoin’s price dynamics highlights the cryptocurrency’s sensitivity to economic shifts and policy changes,” Bitfinex stated, explaining that passive demand, majorly driven by systematic investment plans, is expected to sustain the new trend of flows into spot Bitcoin ETFs in the near term.

At the time of writing, data from CoinMarketCap showed BTC was changing hands at $69,750, up 13% in the past week. Bitfinex thinks the rally could be a sign that the asset has established a market bottom.

Sustaining Bitcoin’s Trajectory

Furthermore, Bitfinex revealed that bitcoin’s current on-chain support level is $60,000. Provided the passive inflows into the spot ETFs are sustained, the asset would maintain a range above $60,000-$62,000, and analysts expect a ranging market or price rises from there.

Besides flows into the ETFs, bitcoin’s stability is supported by the slowed distribution of long-term holders. This indicates that these investors are not offloading their holdings at current prices and their initial pace.

In addition, newly emerging whales have been acquiring BTC at an average cost of $60,000. Likewise, long-standing whales have consistently displayed stable activity at the same price. Analysts said engagement at $60,000 suggests the price has become a significant support level.