Bitcoin Surges Past $71,000 on Reversal of ETF Flows and Risk Appetite Boost

Bitcoin has surged past $71,000 for the first time since early June, reaching approximately $71,700 in continuous trading. This move comes after a significant turnaround in U.S. spot Bitcoin ETF flows, which have seen inflows totaling $1.004 billion across three sessions.

The six-session net inflow has reached $1.252 billion, with BlackRock's iShares Bitcoin Trust ETF (IBIT) accounting for the largest share at 55%. This reversal of fortunes in ETF inflows is a key indicator of whether positive policy sentiment can stimulate renewed interest from institutional investors.

President Donald Trump's call on Congress to approve a 'fair version' of the Clarity Act and Treasury purchases that temporarily lowered long-term yields have contributed to this increase in risk appetite. However, regulatory clarity remains uncertain, with progress on the Clarity Act delayed and calls for stricter ethics measures growing.