The wave of institutional investors placing their stakes in Bitcoin has surged, manifesting as gargantuan inflows in investment funds connected to the flagship cryptocurrency just last week. This trend appears to illuminate a bullish sentiment amongst these major league players. Fueled by this big-market enthusiasm, speculations are rife on a potentially imminent Bitcoin rally that could see the cryptocurrency reaching a new peak of $80,000.
The latest weekly report from CoinShares reveals that Bitcoin investment products recorded a remarkable net inflow of $942 million. This inflow surge is believed to have been a direct response to the latest Consumer Price Index (CPI) inflation data that was released on Wednesday – a report that fell short of expectations. Indicating that inflation in the US could be decelerating, this new report revived investor confidence, impacting the Bitcoin market in particular as approximately 89% of total inflows occurred in the latter three trading days of that week.
The rationale behind the surge can be partly attributed to lowered interest rates, triggered by the modest inflation numbers. This reduction in interest rates can be a boom for the crypto market as investors become more daring, venturing out to invest in ripple-effect assets like Bitcoin.
It’s worth noting that the United States took the lion’s share of the inflows into Bitcoin, with an incredible $1 billion flowing into the country’s Spot Bitcoin ETFs last week. Plus, Grayscale’s Bitcoin Trust (GBTC), despite experiencing over $16 billion of outflows following the ETF endorsement in January, also enjoyed inflows – recording $18 million in that very week.
Continuing the upward trajectory, Spot Bitcoin ETFs still reported significant inflows this week. Investors disclosed in a post previously placed on X, formerly Twitter, that these funds recorded a net inflow of $237.2 million on May 20 alone. Adding to the good news, GBTC noted an additional inflow of $9.3 million.
The spotlight also extends to the Altcoins; Solana, Chainlink, and Cardano. These crypto tokens also enjoyed a surge, recording inflows of $4.9 million, $3.7 million, and $1.9 million respectively.
There’s a prevailing sense of optimism as Spot Bitcoin ETFs continue to garner a high demand and record substantial inflows. Market spectators are becoming increasingly hopeful that Bitcoin’s bull run could get back on track, given the significant contributions of these investment funds to the crypto’s previous new all-time high (ATH) of $73,750 in March.
Moreover, the data reflecting potential economic improvements in the U.S. could also contribute greatly to a bullish progression for Bitcoin, potentially driving its value to $80,000 and beyond.
Taking a glance towards technical analysis, it seems Bitcoin may have weathered the worst of the storm. Crypto analyst Rekt Capital uncovers that the crypto token appears to have successfully navigated its way out of the post-halving danger zone.
