- Published on
Bitcoin ETF inflows hit $731M, highest since January as BTC reclaims $80K
- Authors
- Name
- DeepHorus
Bitcoin exchange-traded funds (ETFs) in the United States experienced their largest daily inflows in nearly eight months on Thursday, drawing $730.9 million as the cryptocurrency reclaimed the $80,000 price level. The influx of capital represents the biggest daily haul since January 14, when the funds attracted $843.6 million, according to data from SoSoValue. This significant uptick in investment follows a more modest $101.2 million in inflows recorded on Wednesday, signaling a renewed burst of institutional interest.
The surge in ETF activity coincided with Bitcoin trading between approximately $76,000 and $81,000 throughout the week, as tracked by CoinGecko. The rally, however, is facing scrutiny from market analysts. CryptoQuant, a blockchain data platform, has flagged concerns about the rally's underlying strength, citing weaker spot demand and heavy short covering as primary drivers. The platform identifies $83,000 as a critical threshold for confirming a new bull market.
Leading the day's inflows was BlackRock's iShares Bitcoin Trust (IBIT), which alone attracted $454 million, accounting for about 62% of the total daily volume, according to Farside Investors data. ARK Invest and 21Shares' ARKB fund followed with $137.7 million, and Fidelity's FBTC brought in $74.4 million. Conversely, only two funds saw outflows: VanEck's HODL and WisdomTree's BTCW, which shed $19.6 million and $5.2 million respectively.
CryptoQuant's analysis suggests Bitcoin's recent price appreciation was largely fueled by traders closing short positions rather than opening new long positions. This pattern points to limited fresh buying demand. The report further noted that Bitcoin holders realized 23,000 BTC in net profits on August 21 aloneāthe highest daily amount this yearāand approximately 110,000 BTC in total since August 19, indicating substantial profit-taking.
The company has outlined a key technical test near Bitcoin's 365-day moving average, which is approximately $82,300. Historically, this level has served as a dividing line between bull and bear markets. Bitcoin reached $81,400 on August 28 before retreating below this threshold. CryptoQuant stated that a decisive close above $83,000 would confirm a new bull market, while a rejection could trigger a pullback toward the 200-day moving average near $69,000.
Market sentiment remains divided on the rally's sustainability. While the record ETF inflows demonstrate strong institutional participation, the caution from analysts like CryptoQuant highlights concerns about the lack of organic demand. The coming days will be crucial as Bitcoin tests the critical $83,000 resistance level, determining whether this is the start of a sustained upward trajectory or a temporary surge.
