Bitcoin Shatters $66,000 Resistance Amid Strong ETF Market Inflows

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After staggering through a bruising 20% price correction earlier in May, which forced Bitcoin to retreat below $56,400 and triggered an increase in outflows from the Bitcoin ETF market, the world’s most valuable cryptocurrency has managed to rally. With a strong resurgence, it has shattered the significant $66,000 resistance frontier, converting it into a fresh support domain.

As Bitcoin’s price bounces back robustly, the torrent of inflows into the US spot Bitcoin ETF market shows no signs of dwindling anytime soon. Facts and numbers around these inflows unveil an engrossing tale. According to Farside data, spot Bitcoin ETFs witnessed their strongest inflow of the week- a peak not seen in two months and the US fund category noted a hefty $948 million in positive net inflows between May 13 and May 17.

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Fascinatingly, an impressive 89% of these inflows came during the week’s final three trading days. Market analysts, researchers, and seasoned watchers, like James Butterfill of CoinShares, connected this trend to a shift in investor sentiment spurred by the publication of an unexpectedly modest Consumer Price Index (CPI) report released the preceding Wednesday. Butterfill pinpointed the consequences of the report saying, “Our view is that Bitcoin prices have once again become linked with interest rate expectations, as evidenced by the immediate inflow response sparked by the lower-than-expected CPI report.”

Notably, the Grayscale Bitcoin Trust, which had witnessed outflows of $16.6 billion since the birth of the first Bitcoin ETF in January, observed a small, but significant inflow of $18 million.

But it was not just spot Bitcoin ETFs that were in the limelight. According to CoinShares, the entire digital asset investment product sphere experienced inflows for the second week in a row, tallying up to $932 million. However, trading volumes, still being on the lower side – $10.5 billion, failed to kindle the heights they had touched in March when they stood at $40 billion.

The consistent price recovery of the crypto giant, along with the reinvigorated institutional interest in Bitcoin ETFs and the broader digital assets space, has piqued investor interest. For market watchers, Bitcoin’s resilient hold over the $66,250 support level, with over 530,000 BTC traded at this price point, provides a convincing testament to the asset’s potential for further gains.

Crypto analyst Ali Martinez, echoing this sentiment, states, “If the support for $66,000 holds, Bitcoin could see strong potential for further gains in the coming days.” Yet, Bitcoin, despite clawing its way back beyond the critical $66,000 level, must grapple with a defining moment as it seeks to break free from its entrenched trading range.

Crypto expert Rekt Capital advised caution, pointing out that “Although Bitcoin has marked a bull flag breakout confirmation, the asset must secure a daily close above $67,000 to carry on its tradition of higher highs and guaranteeing more upside potential.”

Rekt Capital also underlined the fact that Bitcoin has been hovering between the low and high range of $60,000 and $70,000 for over two months. This is indicative of an inherent consolidation process, which, Rekt Capital postulates, should enable Bitcoin to revisit its range high of $71,500 over time.

As of this writing, Bitcoin has rallied at $68,130, making remarkable strides with a 9% surge over the preceding week and more than an 8% leap over the last fourteen days.

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Melinda Cochrane is a poet, teacher and fiction author. She is also the editor and publisher of The Inspired Heart, a collection of international writers. Melinda also runs a publishing company, Melinda Cochrane International books for aspiring writers, based out Montreal, Quebec. Her publication credits include: The art of poetic inquiry, (Backalong Books), a novella, Desperate Freedom, (Brian Wrixon Books Canada), and 2 collections of poetry; The Man Who Stole Father’s Boat, (Backalong Books), and She’s an Island Poet, Desperate Freedom was on the bestseller's list for one week, and The Man Who Stole Father’s Boat is one of hope and encouragement for all those living in the social welfare system. She’s been published in online magazines such as, (regular writer for) ‘Life as a Human’, and Shannon Grissom’s magazine.