"Money Poured in with Ceasefire"...Bitcoin ETF Surges by $500 Million

▲ Bitcoin Spot ETF

Bitcoin (BTC) has recovered its risk-on sentiment following a ceasefire between the US and Iran, reclaiming the $80,000 mark, and US spot Bitcoin ETFs saw a net inflow of $532.21 million in a single day.

Cointelegraph reported on May 5 (local time) that US spot Bitcoin ETFs recorded a net inflow of $532.21 million on May 4. By product, BlackRock's IBIT accounted for the largest share with $335.49 million, followed by Fidelity's FBTC with $184.57 million. Morgan Stanley's MSBT also recorded a net inflow of $12.16 million, while other products had no additional inflows.

This capital inflow extends the net inflow trend for three consecutive trading days. Previously, $629.73 million flowed in on Friday, and $14.76 million on Thursday. This reverses the trend from the previous three trading days, during which a total of $490.63 million flowed out. Cointelegraph reported that Bitcoin surpassing $80,000 again after about three months stimulated the capital inflow.

The market attributes the rebound to the recovered risk-on sentiment following the ceasefire. Bitfinex analysts analyzed that Bitcoin broke through a psychological resistance level due to concentrated short-squeeze liquidations in the $79,500 to $81,000 range. They added that the $77,000 to $78,000 range is acting as a key support level for leveraged long positions.

However, the macro environment and geopolitical variables remain a burden. Cointelegraph reported that the US launched 'Operation Freedom,' deploying 15,000 troops to protect the Strait of Hormuz shipping lanes, and Iran warned that this could destabilize the ceasefire. Additionally, this week's US non-farm payroll data and Federal Reserve statements were identified as variables that will determine the direction of risk assets overall. The analysis suggests that if inflation concerns persist, the possibility of prolonged high-interest rates increases, while conversely, if indicators are sluggish, capital rotation into tech stocks and digital assets could occur.

Ethereum spot ETFs also showed a rebound. The net inflow on May 4 alone was $61.29 million, and on the preceding Friday, $101.18 million flowed in. Cointelegraph reported that the cumulative net inflow into Ethereum spot ETFs has exceeded $12 billion. With capital flowing simultaneously into Bitcoin and Ethereum spot ETFs, the cryptocurrency market is interpreted as having entered a phase where it reacts more strongly to macro variables and liquidity structures than to internal supply and demand.

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