Bitcoin ETF Inflows Hit $512 Million, BTC Price Stays Above $85,800

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Fed Rate Hold Boosts Crypto Market

Bitcoin is maintaining a strong position above $85,800 on Thursday following substantial inflows into Bitcoin Exchange-Traded Funds (ETFs) and a surge in whale demand. Earlier in the day, Bitcoin achieved a peak of $87,440, the highest since early March.

The Federal Reserve’s decision to maintain its current interest rate policy while projecting future rate cuts has played a pivotal role in bolstering market sentiment. The central bank’s stance, coupled with its acknowledgment of potential economic uncertainties, has provided a degree of clarity for investors, reducing immediate concerns about drastic policy changes. This policy stability has contributed to a broader recovery in risk-on assets, including cryptocurrencies.

Over the preceding days, a notable trend emerged as Bitcoin ETFs experienced a reversal of previous outflows, culminating in a total inflow of $512 million. Leading this surge were prominent ETFs such as the ARK 21Shares Bitcoin ETF (ARKB), the Fidelity Wise Origin Bitcoin Fund (FBTC), and BlackRock’s iShares Bitcoin Trust (IBIT). These funds attracted significant capital, demonstrating renewed institutional interest in the leading cryptocurrency. Specifically, ARKB registered $180 million in net inflows, while IBIT and FBTC saw inflows of $169.6 million and $136.5 million, respectively. The reversal is noteworthy as it marks the first time since late January that Bitcoin ETFs have recorded three consecutive days of positive net inflows.

In parallel with the ETF inflows, on-chain data reveals a substantial increase in Bitcoin whale activity. Large Bitcoin transactions, defined as those exceeding $100,000, surged by $13 billion in the days leading up to the Federal Reserve’s policy announcement, according to data from IntoTheBlock. This surge in large transactions reflects a significant increase in buying pressure from high-net-worth individuals and institutional investors, suggesting a strategic accumulation of Bitcoin ahead of anticipated market movements.