Bitcoin Holds Steady Amid Market Volatility and ETF Inflows
By: Isha Das
Bitcoin has recently demonstrated resilience in the face of market challenges, managing to bounce back and trade around $65,000. This recovery comes after the cryptocurrency market experienced volatility, with Bitcoin's price previously sliding down familiar low support levels. The rebound mirrors a market finding temporary stability, although traders remain cautious amid macroeconomic uncertainties such as global tariffs.
One of the significant factors behind this price action is the notable $257.7 million net inflow into U.S. spot Bitcoin ETFs, indicating renewed institutional interest and confidence. On Tuesday, major ETF players like IBIT, FBTC, and ARKB led these inflows, reversing a trend of five consecutive weeks of outflows and suggesting a potential turn in investor sentiment. Nevertheless, overall spot Bitcoin ETFs still record approximately $2.6 billion in net selling for the year, highlighting the precarious balance between buying and selling pressures.
The options market is also showing dynamic shifts, with increased attention on hedging activities as volatility measures tilt towards more protective puts. Deribit, a leading crypto derivatives exchange, reported a shift in its 7-day put-call skew from -6% to -17%, reflecting traders’ appetite for downside insurance. This cautious behavior is underscored by broader macroeconomic forces, notably the introduction of new U.S. global tariffs that serve as a catalyst for heightened market volatility.
Observers note the pivotal $65,000 mark as a key 'repair rung' for Bitcoin. Sustained support at this level could pave the way to higher resistance points at $66,894 and $67,995. Conversely, a regression could push the cryptocurrency back toward $61,726, with further downside risk if current demand wanes. Market strategies remain divided, with scenarios ranging from a continued recovery buoyed by ETF inflows, to fading momentum or a more severe macroeconomic shock. The outcome will likely depend on how these financial pressures and economic forecasts evolve.
