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

Flows into the US Bitcoin exchange-traded fund (ETF) market have reversed after a period of outflows and minimal inflows.

According to Bitfinex Alpha a reportThe new trend of heavy net flows into spot Bitcoin ETFs indicates renewed interest in the products and investors' faith in the potential of the digital asset.

Bitcoin ETF Inverse Flows

Last week, Bitcoin ETFs were bought opinion Collective net inflow of $948.3 million. Compared to the inflows of $228.5 million recorded the previous week, this figure was evidence of significant investments. Interestingly, last week saw no outflows, while the previous week saw investors withdraw as much as $111.7 million from the products.

The reversal in ETF flows coincides with Bitcoin's bull run, which has seen the asset post its highest daily close in five weeks. Bitcoin saw a significant rebound from the lows of its range and posted a significant rally on May 15, driven primarily by favorable regulatory developments and a weaker-than-expected CPI report in the US.

“This interaction between macroeconomic indicators and Bitcoin price dynamics highlights the sensitivity of the cryptocurrency to economic shifts and policy changes,” Bitfinex said, explaining that negative demand, mainly driven by systematic investment plans, is expected to sustain the new trend of inflows into Bitcoin ETFs. On the stock exchange. In the near term.

At the time of writing, the data is from CoinMarketCap show up BTC was trading at $69,750, up 13% in the past week. Bitfinex believes that the rise may be a sign that the asset has reached a market bottom.

Keep track of Bitcoin

Furthermore, Bitfinex revealed that the current on-chain support level for Bitcoin is $60,000. Provided negative flows into spot ETFs continue, the asset will maintain a range above $60,000-$62,000, and analysts expect a market that ranges or prices rise from there.

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

In addition, newly emerging whales acquired Bitcoin at an average cost of $60,000. Likewise, ancient whales consistently showed stable activity at the same rate. Analysts said the correlation at $60,000 indicates that the price has become a major support level.