Last week, exchange-traded funds (ETFs) for spot Bitcoin listed in the U.S. recorded net inflows exceeding $600 million.
While this indicates a continuation of positive capital movement into digital asset products, it was also the lowest weekly inflow figure in the past month, signaling investor caution or profit-taking at higher levels.
A slowdown in inflows into ETFs amid price consolidation is cooling investor interest
Between May 12 and 16, inflows into Bitcoin spot ETFs amounted to $603.74 million. While this was purely positive in terms of inflows into these funds, last week's figure was the lowest weekly inflow in the past month. This highlights a more cautious, yet steady movement of capital into the market. The slowdown in inflows into ETFs can be linked to Bitcoin's price consolidation over the five-day period in question. During this period, Bitcoin traded sideways, facing resistance around $104,971, and finding stable support at $102,711.
This lack of clear movement likely caused some investors to be more cautious, leading to a decrease in capital inflows into Bitcoin ETFs last week.
Bitcoin aims for new heights
However, bullish momentum remains in the Bitcoin market. The king of cryptocurrencies briefly rose to a three-month high of $107,108 during the morning Asian trading session on Monday. Although it has since corrected to $104,956, the bullish sentiment around the coin remains significant.
The rise in Bitcoin's price is accompanied by an increase in open interest in futures contracts. At the time of publication, it stands at $70.03 billion, which is a 7% increase over the last day. Open interest refers to the total number of outstanding derivative contracts, such as futures or options, that have yet to be settled. When open interest rises along with the price, it usually signals that new money is entering the market. This supports the strength of the current Bitcoin trend and could trigger a sustained price increase in the short term.
Furthermore, options market data further supports this optimistic outlook. Today, demand for call options exceeded put options, indicating increasing demand for bullish positions. However, with rising derivative activity and Bitcoin recovering higher price levels, the coin may reach new highs in the short term.#BinanceSquare #Write2Earn #crypto #Binance #trading $BTC
