Bitcoin (BTC) is witnessing a notable recovery, with its current price at $87,559.50, an increase of 3.58%. This upward trend is also observed in Bitcoin exchange-traded funds, which saw a modest net inflow of $15 million last week, noting that this represents the lowest weekly net inflow since the beginning of 2025.

Key Factors Influencing Bitcoin's Recovery

- * Global Liquidity and Institutional Signals: The increase in global liquidity and institutional investment signals contribute to the rise in Bitcoin's price.

- Stablecoin Supply Ratio: However, the stablecoin supply ratio (SSR) of 14.42 indicates weak purchasing power of stablecoins, which may limit Bitcoin's upside potential.

- Market Sentiment: Despite the recovery, market sentiment remains cautious, as traders are closing their positions rather than opening new ones, as evidenced by the decrease in open interest in Bitcoin futures contracts.

- * Potential Catalyst: Improvement in macroeconomic conditions and continued inflows into exchange-traded funds, or a contraction in volatility, could lead to a sharp increase in Bitcoin's price.