Bitcoin ETF Inflows Hit $978M: BlackRock’s $597M Leads Despite Market Downturn

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Bitcoin continues its downward trend, trading near $96,259 after a sharp 5% drop. The flagship cryptocurrency has faced increasing pressure from strong U.S. economic data, which has dampened investor sentiment. With a 24-hour low of $96,132 and a high of $102,022, Bitcoin’s trading volume has also dipped by 23%, reflecting cautious market activity. Overall it also hit major altcoins which fell by 5% to 10% within 24 hours, even memes felt the heat, with Dogecoin (DOGE) dropping 8% and Shiba Inu (SHIB) dropping to 10%. The global crypto market dropped 16%, now at $3.38 trillion.

Despite the tumbling Bitcoin performance, BlackRock’s iShares Bitcoin ETF (IBIT) has made waves in the crypto world, recording a massive $597 million inflow despite a broader market downturn. This marks the third consecutive net inflow for spot Bitcoin ETFs, signaling strong institutional confidence even as the market faces macroeconomic pressures.

In the downtrend, Bitcoin ETFs are raising the temperature. Will this rally continue? let’s find out!

Record Inflows Highlight Market Optimism

On January 7, BlackRock’s IBIT purchased 6,078 BTC worth $208.7 million, significantly outpacing the new BTC mined that day. As per data, the ETF’s inflow of $597 million stands out as a lifeline for the crypto market, which has been grappling with investor caution due to strong U.S. economic data. In total, Bitcoin spot ETFs saw nearly $978 million in inflows, with BlackRock leading the charge.

Other ETFs Struggle Amid Selloff

While BlackRock continues to dominate, other Bitcoin ETFs faced notable outflows. Fidelity’s FBTC, Bitwise’s BITB, and Ark Invest’s ARKB saw combined outflows exceeding $400 million. Grayscale’s GBTC also recorded a $125.45 million outflow, further highlighting BlackRock’s contrasting strength in the market.

What’s Dragging Bitcoin Down?

The crypto market is feeling the heat from strong U.S. economic data. More job openings and better-than-expected service sector numbers have made the U.S. dollar stronger, which isn’t great news for Bitcoin. On top of that, higher Treasury yields are making traditional investments more attractive, pulling attention away from crypto. The U.S. dollar index (DXY) remains strong above 108.50, while the 10-year Treasury yield hit a 35-week high of 4.68%, adding to Bitcoin’s downtrend.

A Silver Lining

BlackRock’s aggressive Bitcoin purchases, even during a market downturn, signal unwavering confidence in the long-term potential of digital assets. As the iShares Bitcoin ETF continues to attract substantial inflows, it could set the stage for renewed optimism in the crypto space, especially as investors navigate macroeconomic challenges.

As the dust settles, all eyes are on institutional players and economic trends to see where Bitcoin heads next. With BlackRock, Fidelity, and true digital gold hype, we’re on the brink of financial freedom.