Bitcoin ETF Rebound Shows Promising Inflows Amid Market Caution
Spot Bitcoin ETFs recorded $457.3 million in net inflows on Wednesday, marking the highest single-day inflow in five weeks. This influx is seen as a positive sign, but sustained inflows are necessary to drive Bitcoin prices higher.
Bitcoin is currently trading in a range of roughly $86,000 to $90,000 as traders await upcoming U.S. inflation data scheduled for release at 8:30 a.m. ET. Expectations for a softer-than-expected Consumer Price Index (CPI) could encourage increased risk-taking in the market.
The U.S. inflation report is projected to show a headline year-over-year increase of 3.1% and a core year-over-year increase of 3%. A softer print could enhance risk appetite and potentially boost Bitcoin prices.
Federal Reserve official Christopher Waller commented that interest rates remain well above the neutral level, suggesting room for future cuts, though no immediate rate-cut signals were provided.
The Bank of Japan is anticipated to raise rates by 25 basis points to 0.75% later this week. This move might trigger an upbeat yen and risk-off sentiment; however, current market positioning implies a muted immediate bullish response.
XRP is exhibiting bearish technical indicators, with veteran trader Peter Brandt noting a double-top breakdown. XRP is trading around $1.87 with a potential to drop to $1 or below.
Market snapshot shows Bitcoin near $87,291.26, up approximately 1.55%, Ethereum at $2,853.16, Bitcoin dominance at about 59.97%, the U.S. Dollar Index (DXY) near 98.51, gold priced at $4,356.80, and silver at $66.24.
Spot ETF flow details reveal Bitcoin ETFs with daily net inflows of $457.3 million and cumulative inflows of $57.71 billion, holding an estimated 1.3 million BTC. Ethereum ETFs recorded daily net outflows of $22.4 million with cumulative inflows of $12.64 billion and total ETH holdings around 6.16 million.
