₿- Bitcoin’s rise above $87,000 is driven by a resurgence in institutional interest, with spot Bitcoin ETFs in the U.S. seeing a significant shift from outflows to fresh inflows.
₿- Last week’s $13.4 million in ETF inflows marks a reversal from the previous week’s $708 million outflows, signalling renewed confidence and a shift in market sentiment.
₿- Despite the rally, Bitcoin faces key resistance levels at $88,800 and $91,000, with analysts cautioning that a breakout above these levels is crucial for sustaining the bullish trend.
Bitcoin’s rise above $87,000 is catching attention, and it’s not just about the price. Analysts are highlighting a key factor: a resurgence in institutional interest. After a rough week of outflows, spot Bitcoin ETFs in the U.S. have seen a turnaround, with fresh inflows signalling renewed confidence from big investors.
ETF Inflows Signal Sentiment Shift
Last week, spot Bitcoin ETFs recorded $13.4 million in net inflows, reversing the prior week’s significant $708 million in outflows. Unlike typical low-volume holiday rallies, the renewed demand aligned with Bitcoin’s sharp rebound.
According to analysts, this recent surge was notably driven by a reversal in sentiment following earlier price pressure caused by politically charged comments. The rally has also outperformed the lukewarm “Santa Rally” in December, suggesting a shift in market tone.
ETF Demand Suggests Institutional Confidence
The iShares Bitcoin Trust (IBIT) received the largest inflows last week, with $186.5 million. Bitwise’s BITB followed with $23.8 million. Other funds, including VanEck’s HODL, Grayscale’s mini BTC Trust, Invesco’s BTCO, and Franklin’s EZBC, contributed an additional $26.3 million combined.
The renewed interest is seen as a sign of growing confidence among institutional players, especially as traditional markets show signs of stress. While equities have recently faced pullbacks, gold has reached new all-time highs—an indication that investors are leaning toward safer assets, including Bitcoin.
Key Resistance Levels Still in Play
Despite the excitement, analysts urge caution. Bitcoin must push past the $88,800 resistance level to confirm a sustainable bullish trend. Failing to do so could open the door for another round of sell-offs.
Further resistance looms at $91,000—an area where many short-term holders are still underwater. According to recent data, these investors face an average unrealized loss of over 5%. Until Bitcoin clears this psychological barrier, sell pressure may persist.
On the positive side, newer investors—those who entered the market within the last month—are back in profit, with average gains of nearly 4%.
Meanwhile, long-term forecasts remain bullish. Bitwise Chief Investment Officer Matt Hougan recently reaffirmed a $200,000 Bitcoin price target by late 2025, citing potential tailwinds from shifting U.S. trade policies.
Stay informed,
Rodcas Consulting Group