Despite the bearish sentiment across the crypto markets, US spot Bitcoin exchange-traded funds (ETFs) have seen over $1 billion in net inflows over the last week. The Crypto Fear and Greed Index, which measures investor sentiment towards Bitcoin, dropped to the “extreme fear” zone at 25, the lowest point since January 2023. This decline coincided with Bitcoin struggling to break the $60,000 mark, hovering between $57,000 and $58,000. However, the index rose to 33 as Bitcoin surpassed the $60,000 mark, indicating some positive momentum.
US spot Bitcoin ETFs had a successful week, with $310 million in inflows on Friday alone, the largest daily influx in five weeks. BlackRock’s IBIT led the way with $120 million in daily inflows, followed by Fidelity’s FBTC with around $115 million. The last time US Bitcoin ETFs saw over $310 million in daily inflows was on June 5, when investors poured in $488 million. Meanwhile, the German government reportedly moved $3 billion worth of Bitcoin to various crypto platforms, though it remains unclear if they are selling their BTC.
Despite the ongoing bearish sentiment, many crypto investors remain pessimistic about Bitcoin’s short-term future due to selling pressure from whales and major entities. The focus is currently on Mt.Gox creditor repayments, with Wall Street potentially eyeing the opportunity to buy the dip. While the market remains uncertain, the influx of funds into US spot Bitcoin ETFs suggests that some investors are still bullish on the future of Bitcoin and the cryptocurrency market as a whole.
Overall, the recent surge in net inflows into US spot Bitcoin ETFs despite the bearish sentiment in the market indicates that some investors see potential for growth in Bitcoin. The decline in the Crypto Fear and Greed Index to the “extreme fear” zone reflects the overall uncertainty in the market. However, the rise in the index as Bitcoin reclaimed the $60,000 mark suggests that some positive momentum may be building. With significant inflows into ETFs and the German government moving Bitcoin to various platforms, the market remains dynamic and unpredictable.
As the majority of investors remain bearish on Bitcoin’s short-term future, the ongoing selling pressure from whales and major entities continues to weigh on the market. The movement of funds into US Bitcoin ETFs and the German government’s actions in the crypto space add to the overall uncertainty. As the market focuses on Mt. Gox creditor repayments and potential buying opportunities for Wall Street, the landscape of the cryptocurrency market remains highly volatile. Despite the challenges and uncertainties, the continued interest in US spot Bitcoin ETFs demonstrates some optimism for the future of Bitcoin and the crypto market.
