U.S. Spot Bitcoin ETFs Attract Nearly $1 Billion in Inflows Amid Strategic Reserve Speculation
U.S. Spot Bitcoin ETFs recorded nearly $1 billion in inflows between Friday and Monday, fueling bullish sentiment as speculation about a potential U.S. Bitcoin Strategic Reserve gains traction.
Bitcoin (BTC) has once again surged past the $100,000 mark, largely driven by significant institutional investments from Spot Bitcoin ETFs. The inflow of capital, totaling $978 million over two days, has helped sustain Bitcoin’s upward trajectory.
This surge in purchases reflects growing institutional confidence in Bitcoin, despite technical indicators hinting that the cryptocurrency may be overbought. Key contributors to the inflow include Fidelity’s FBTC, which added $370.2 million, and BlackRock’s IBIT, contributing $209.1 million.
Institutional Confidence Fuels Bitcoin’s Growth
In addition to ETF-driven inflows, corporations like MicroStrategy are continuing to increase their Bitcoin holdings. On Monday, MicroStrategy announced the acquisition of 1,070 BTC, valued at $101 million. Although its buying pace has slowed in recent weeks, the company has earmarked $42 billion for Bitcoin purchases over the next three years, reinforcing long-term demand for the asset.
Potential Market Correction Ahead
Despite the bullish momentum, Bitcoin may be approaching a short-term correction. Technical analysis suggests that Bitcoin is in overbought territory, with key support levels at $100,000 and $96,300 based on Fibonacci retracement levels. A correction could provide a more stable foundation for continued growth.
Market Sentiment and Political Factors
Bitcoin’s market cap has surged to $2 trillion, with a 24-hour trading volume of $48.18 billion. The market’s optimism has also been bolstered by political speculation surrounding President-elect Donald Trump’s potential return to office and discussions around a U.S. Bitcoin Strategic Reserve. This anticipation continues to fuel positive sentiment, underscoring Bitcoin’s growing role in global financial markets.
