Bitcoin ETF Inflows Hit $506M, Highest Since February

Bitcoin ETFs see massive $506 million inflows as institutional demand returns, signaling potential rebound.

  • U.S. spot Bitcoin ETF inflows surged to $506 million, their highest level since early February.
  • On-chain data shows easing selling pressure, with the Coinbase premium index turning positive for the first time since mid-January.
  • Analysts warn that while the signals are constructive, they do not yet confirm a definitive bottom or trend reversal for the market.

Bitcoin extended its recent rally on Thursday, climbing approximately 4.4% to around $68,300, fueled by strong institutional inflows and easing selling pressure on U.S. exchanges. According to data from SoSoValue, U.S. spot Bitcoin ETFs recorded $506 million in inflows, marking their best day since February 2 and signaling a potential reacceleration of institutional demand. Meanwhile, the Coinbase premium index—a key gauge of U.S. institutional appetite—flipped positive this week for the first time since mid-January, a shift noted by CryptoQuant founder Ki Young Ju.

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Consequently, this easing of selling pressure has sparked discussions about a potential market bottom. “Bitcoin spot demand is growing for the first time since late November,” noted Julio Moreno, head of research at CryptoQuant. Market Analyst Lacie Zhang from Bitget Wallet suggested the dynamics could present a strategic buying opportunity with improved risk-reward ratios, pointing to a 25% drop in on-chain outflows as a supportive signal.

However, not all analysts share this optimistic outlook. Illia Otychenko, Lead Analyst at CEX.IO, offered a more cautious perspective, linking the reduced pressure to a cooling in speculative trading activity rather than a surge in new demand. He highlighted that futures volume has dropped about 44% and spot volume is down roughly 50% from recent highs, stating, “When leverage declines, and trading slows, forced selling also tends to decrease.” Otychenko emphasized that the current setup, while constructive, is not strong enough on its own to confirm a trend reversal, especially without improving macro conditions.

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