Bitcoin Surges Past $78K on Liquidity Hopes and ETF Inflows

Bitcoin surged to nearly $78,000 in the past week as hopes of increased liquidity and continued inflows into cryptocurrency exchange-traded funds (ETFs) boosted crypto markets. The global crypto market capitalization rose by $2.2 trillion to reach $2.53 trillion, according to Coingecko.

Nischal Shetty, Founder of WazirX, attributed the strong weekly recovery in crypto markets to improving liquidity expectations outweighing pressure from elevated oil prices and long-term bond yields. Reduced expectations of further Federal Reserve tightening, Treasury buybacks, and a weaker US dollar also supported risk appetite.

Shetty noted that Bitcoin moved from a bearish technical setup into a bullish daily structure as buyers cleared levels at $64,000, $70,000, and $74,000. Crypto ETFs recorded approximately $1.45 billion in net inflows across four consecutive sessions this week, reversing roughly $220 million in outflows during the preceding three sessions.