Institutional investors are doubling their bets on Bitcoin, with investment funds related to the flagship crypto soaring inflow last week. This development indicates bullish sentiment among these investors, which could lead to a Bitcoin rally to $80,000.
Bitcoin investment funds record $942 million in inflows
According to the latest CoinShares weekly reportBitcoin investment products recorded net inflows of $942 million. These inflows are said to have been “an immediate response to Wednesday’s lower-than-expected CPI report,” with 89% of the total inflows occurring on the last three trading days of last week.
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The Consumer Price Index (CPI) Inflation figures, which came in lower than expected, are believed to have restored investor confidence in the market. The data showed that US inflation may be slowing, raising the outlook for the US Federal Reserve lowering interest rates. Lower interest rates are good for the crypto market as it will make investors more willing to invest risky assets like Bitcoin.
The US was responsible for the majority of BTC inflows, with $1 billion flowing in US Spot Bitcoin ETFs last week. Grayscale’s Bitcoin Trust (GBTC)which has recorded outflows of more than $16 billion since ETF approval in January, also saw inflows of $18 million (for the first time) last week.
This trend of significant inflows into these Spot Bitcoin ETFs is likely to continue this week. Farside Investors Revealed in an X (formerly Twitter) after that these funds recorded net inflows of $237.2 million on May 20. Interestingly, none of these Spot Bitcoin ETFs saw outflows that day, while GBTC recorded inflows of $9.3 million.
It is also worth noting that while BTC saw inflows of $942 million, there were almost no inflows to short Bitcoin, with CoinShares noting that this implies a positive outlook among investors. Altcoins such as Solana, Chainlink and Cardano also recorded significant inflows, with $4.9 million, $3.7 million and $1.9 million flowing into these crypto tokens respectively.
BTC’s Bull Run may have started again
With the Discover Bitcoin ETFs As we once again see impressive demand and record significant inflows, there is a sense that Bitcoin’s bull run could be in full effect. These investment funds were known to have contributed significantly to the rise of the flagship crypto new all-time record (ATH) from $73,750 in March.
Therefore, these funds can be reused leads to a new rally for Bitcoin, taking it to $80,000 and above. Besides the Spot Bitcoin ETFs, other factors are also contributing to a bullish continuation of BTC. One is the macroeconomic datashowing that the economic situation in the US could improve.
Meanwhile, from a technical analysis perspective, the worst seems to be over for Bitcoin with crypto analyst Rekt Capital. revealing that the crypto token has left the danger zone after the halving.
Featured image of Dall.E, chart from Tradingview.com