Bitcoin ETF inflows surge as BTC holds $97K amid cautious trader sentiment

Bitcoin sustained $97,000 on Jan. 4, extending its 6% year-to-date rally. Reclaiming the 50-day simple moving average sparked optimism, but traders remain wary, eyeing key levels at $99K for a bullish flip or a possible dip to $90-88K.

Institutional interest showed signs of recovery, with U.S. spot Bitcoin ETFs witnessing a dramatic $900 million inflow on Jan. 3. The Fidelity Wise Origin Bitcoin Fund led with $357 million, followed by the iShares Bitcoin Trust at $253 million.

Meanwhile, the Coinbase Premium index rebounded above its 14-day moving average, signaling potential sustained buying interest. Traders remain cautiously optimistic, expecting clearer short-term trends in the first full trading week of 2025.