Bitcoin ETF Inflows Resume On Core CPI Drop, BTC To Hit New ATH?

Inflows into spot Bitcoin ETF have resumed once again shooting to $755 million on Wednesday as institutions buy Bitcoin dips on core CPI drop.
By Bhushan Akolkar
Bitcoin ETF Inflows Shoot $755M On Core CPI Drop, Will BTC Hold $100K?

Highlights

  • Fidelity Bitcoin ETF (FBTC) led the inflows with $463 million, while Ark Invest's ARKB attracted $138 million
  • Interest in Bitcoin ETFs is expanding internationally as Thailand seeks to approve its first Bitcoin ETF.
  • A core CPI inflation drop to 3.2% sparked a rally in both equities and crypto markets
  • On-chain data shows increased accumulation by wallets holding over 10 BTC supporting BTC price move above $100K.

Spot Bitcoin ETF registered net positive inflows on Wednesday following the drop of core CPI signaling cooling inflation, thereby triggering a rally in global equity and crypto markets. Yesterday, BTC ETFs registered net inflows of $755 million with Fidelity’s FBTC leading the charge with $463 million in inflows. Following the 100-point surge in the S&P 500, the BTC price also made a move past $100K level.

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Bitcoin ETF Inflows Resume Again

After four consecutive trading sessions of outflows, the spot Bitcoin ETF witnessed strong inflows on Wednesday led by Fidelity. These Bitcoin investment products scooped more than 7,548 Bitcoins from the market against the daily BTC production of 450 BTC.

Source: HODL15Capital

As shown above, Fidelity’s FBTC saw inflows totaling $463 million, leading the pack, while Ark Invest’s ARKB came second clocking $138 million of inflows.

Although BlackRock’s iShares Bitcoin Trust (IBIT) saw only $31 million in inflows, it clocked a massive $2.35 billion in trading volumes. On the other hand, Fidelity’s FBTC clocked $284 million in trading volumes. Asset managers are working to expand its Bitcoin offerings to other global markets as well. Earlier this week, BlackRock launched a Bitcoin ETF variant on CBOE Canada.

Apart from the US, the demand for Bitcoin ETFs continues to remain strong. Hunter Horsley, CEO of Bitwise Invest stated that they have continued to receive inquiries from other nation-states as well. He said:

“We just provided some information for a nation state asking about Bitcoin ETFs. Considering moving some exposure from foreign currency govt bonds into BTC. Bitcoin is entering a new chapter”.

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Core CPI Drop Fuels Market Optimism

The Consumer Price Index (CPI) for December rose by 2.9%, aligning with market expectations. Meanwhile, Core CPI inflation, which excludes food and energy prices, dropped to 3.2%, slightly below the anticipated 3.3%. This was enough to send global equities and crypto market soaring high on Wednesday.

The S&P 500 closed with a gain of more than 100 points in yesterday’s trading session, fueled by an unexpected drop in core CPI inflation. The index added an impressive $900 billion in market capitalization during the trading session.

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Will Bitcoin Price Sustain Above $100K to Hit New ATH?

On-chain data shows that the current BTC rally is backed by strong fundamentals. According to blockchain analytics firm Santiment, the accumulation of wallets holding more than 10 BTC has resumed once again after stagnating during the second half of December and early January.

Source: Santiment

Similarly, the number of non-empty wallets has been declining over the past six weeks, as many small retail traders are cashing out profits and attempting to time the market peak. The data supports a further rise in BTC in the coming days.

Along with strong inflows into Bitcoin ETF, the BTC price also swiftly moved above $100K before retracing back under that crucial support. As of press time, the Bitcoin price is trading 2.34% up at $99,597 with daily trading volumes up by 5.38% to $58 billion. As per the Coinglass data, the 24-hour liquidations have shot to more than $83 million of which $58 million is in short liquidations.

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Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
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