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The Bitcoin (BTC) price has skyrocketed amid a massive surge in inflows into Bitcoin investment products. The digital asset investment products witnessed $533 million in inflows over the last week, according to CoinShares data. Notably, the surge in inflows was a direct impact of crucial remarks from Jerome Powell, Chair of the Federal Reserve of the United States.
While the market struggled previously with lower trading volume, a massive rebound was seen last week. The market was trading a volume of a whopping $9 billion during this time, reflecting the shift in sentiment and the rising investor confidence in these products. It shows the returns of bulls to the market as bullish sentiment seems to be prevailing.
Bitcoin led the market last week, as it got $543 million in inflows. It is noteworthy that a major portion of these inflows was seen last Friday. This was when the Fed chair made his dovish remarks. The market is now expecting interest rate cuts from the Federal Reserve, injecting bullish momentum into the digital asset market.
While bulls jumped on the Bitcoin ETF bandwagon, the struggle for the other assets continues. For example, Ethereum (ETH) products saw outflows of about $36 million during this time. Although the recently launched Ethereum ETFs are still gaining slight momentum, the Grayscale Ethereum trust hampered the progress with $118 million outflows.
What does it mean for BTC price?
The price of Bitcoin has seen a remarkable surge since Friday as it has finally gone past the crucial $63,000 threshold. As of this publication, BTC is trading at $63,655, after a slight dip of 0.44% in the last 24 hours. However, the Bitcoin price is up 8.92% in the last seven days.
The recent comments from the Fed chair and the subsequent rise of inflows into Bitcoin ETFs has injected bullish momentum in the price of the coin. Bulls appear to be taking control over the market as bears lose their ground. It is likely that this optimism on the market will prevail, and more highs for Bitcoin are in the cards.
Tomiwabold Olajide
Godfrey Benjamin
Dan Burgin
Alex Dovbnya
Vladislav Sopov