Bitcoin Bounces Back Above $81,000 Amid Strong ETF Inflows

Bitcoin rebounded above $81,000 after experiencing a recent decline. The cryptocurrency's recovery is attributed to factors such as spot buying and short covering.

Rajagopal Menon, Vice President at WazirX, stated that the recovery reflects 'a mix of renewed spot buying and derivatives-market positioning.' U.S. spot Bitcoin ETFs recorded a net inflow of $433 million on September 18, according to CoinMarketCap data.

Prateek Gupta, Head of Business at Mudrex, noted that regulatory momentum has returned with the SEC's five-year exemption for certain tokenised-stock venues and fresh CFTC rulemaking.

The focus is now on whether Bitcoin can sustain levels above $80,000 to $81,000. Continued ETF inflows, healthy liquidity, and institutional participation will be key indicators of the strength of the recovery, while volatility is likely to remain a defining feature of the asset class.