Bitcoin ETFs See Strong Inflows as Market Sentiment Reflects Potential Bull Run

Bitcoin continues to draw attention from investors, as U.S. spot Bitcoin ETFs records significant inflows over the past few days, reaching $136 million in net inflows. BlackRock’s IBIT led the charge with a whopping $98.8 million in a single day, marking its most significant inflow since late August. Other key players, such as Bitwise and Fidelity, also saw positive movements, with total inflows across all funds exceeding $390 million over the period. This trend reflects a growing institutional interest in Bitcoin, even as broader market volatility persists.

These real-time ETF inflows are further supported by deeper market analysis, particularly around Bitcoin’s active realized price. This metric filters out long-dormant supply, offering a more accurate reflection of active market participants’ cost basis. Historically, Bitcoin’s price has oscillated around this active realized price, often serving as a critical support or resistance level. For instance, during the 2021 bull run, Bitcoin surged above this price, signaling overvaluation, while in 2022, the price fell back toward it during market corrections.

In recent months, Bitcoin has bounced off this active realized price twice, mirroring the early stages of the 2021 bull run and suggesting the potential for another upward rally. The active MVRV ratio, which compares Bitcoin’s market value to its realized value, also indicates a stable market environment, highlighting accumulation opportunities that align with the recent surge in ETF inflows.

Ethereum is also witnessing a similar trend, with spot Ether ETFs returning to positive flows after a period of outflows. BlackRock’s ETHA fund led with $59.25 million in net inflows, contributing to the overall rise in confidence across the crypto markets.

As both institutional fund flows and valuation metrics show positive signs, Bitcoin and Ethereum appear to be setting the stage for a future market resurgence, supported by growing investor confidence and accumulation phases.