ETF Inflows Fuel Bitcoin Price Surge Amid Macro Headwinds
Bitcoin's price has been steadily climbing, reaching $65,008 on August 7, up 0.8% from the previous day and slightly above a broadly flat market.
The recent surge in price can be attributed to four consecutive days of inflows into U.S. spot Bitcoin exchange-traded funds (ETFs), which pulled in about $626 million between August 3-6.
BlackRock's IBIT led the charge, accounting for roughly 76% of the total inflows, and was followed by whale accumulation and reduced leverage-driven selling.
However, despite this momentum, several signals suggest that the bounce lacks conviction. New SEC filings show that BlackRock's spot Bitcoin and Ethereum ETFs recorded a combined $3.5 billion net decrease from capital-share activity in the second quarter, indicating that recent inflows are recovering ground lost during a quarter of substantial redemptions.
The crypto Fear & Greed Index remains in 'extreme fear' at around 25, reflecting investor caution and uncertainty.