Well, we all saw this coming, didn’t we?
Bitcoin is back in the spotlight, stealing the show from Ethereum after the recent ETH ETF buzz. The price is on a tear, hovering near its all-time high of $71,000 and hinting at a potential bull run. But what’s driving this sudden surge?
Dive deeper to find out why Bitcoin ETFs are experiencing a record inflow of $880 million, the highest since March, and what it means for the future of cryptocurrency.
The surge in Bitcoin ETF inflows, just a week before the Federal Reserve meeting on June 12, reflects heightened investor confidence, anticipating potential Fed rate cuts later this year. This influx underlines a renewed faith in the crypto market among investors.
Data from London-based investment firm Farside reveals a staggering total net flow of $886 million into Bitcoin ETFs on June 4th alone, indicating fifteen consecutive days of inflows. This trend showcases growing investor confidence in the crypto market’s future.
Dominating the influx of Bitcoin investments are major players like Fidelity (FBTC) with $378.7 million, closely followed by Blackrock’s iShares Bitcoin Trust (IBIT) with $274.4 million, and Ark Investment (ARKB) with $138.7 million. However, not all entities are experiencing similar gains, with Grayscale’s GBTC fund reporting a sluggish net inflow of $28.2 million, while the Invesco Galaxy Bitcoin ETF recorded minimal activity.
Growing Global Demand
With the increasing popularity of Bitcoin ETFs globally, Australia and Thailand have recently introduced these investment options. This reflects a growing interest among both institutional and individual investors in accessing Bitcoin through traditional financial channels.
The surge in Bitcoin ETF inflows precedes the Federal Reserve meeting scheduled for June 12, where discussions around potential rate cuts are anticipated. This expectation is fueled by recent data indicating a slowdown in U.S. inflation and a weakened job market, prompting speculation about the Fed’s future monetary policy decisions.
Recent market movements have sparked optimism among cryptocurrency investors, despite some Treasury yields experiencing their largest two-day drops this year. This shift has eased financial conditions, potentially benefiting speculative assets like cryptocurrencies.
As of now, Bitcoin is currently attempting to recover its gains, with BTC hovering at $71,000, reflecting a 3% surge seen in the last 24 hours. Additionally, trading volume has seen a notable increase of 21.4%, with a market cap reaching $1.4 trillion.
Also Check Out: Crypto Market Prediction: Bitcoin, Ethereum, and Altcoins Poised for 3x to 5x Rally in the Next 12 Months
With renewed investor confidence, the future is looking bright for Bitcoin. It’s back in the driver’s seat!
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