Bitcoin ETF Inflows Rebound Amidst BTC’s $50K Support

Bitcoin experienced ongoing weakness on February 23, with consolidation and a brief slowdown in institutional investment. The price of BTC struggled around $51,000, and bulls found themselves stuck in a narrow trading zone for over a week. Concerns arose over inflows to spot Bitcoin exchange-traded funds (ETFs), with a significant decrease in activity observed in recent days. On February 21, there was even a net outflow of around $36 million. On February 22, there was a stronger inflow of just over $250,000, despite outflows from the Grayscale Bitcoin Trust.

James Van Straten, a research and data analyst at CryptoSlate, noted that normality had returned with a $251 million inflow into the Bitcoin ETFs. Thomas Fahrer, the CEO of Apollo, a crypto-focused reviews portal, predicted that BlackRock’s iShares Bitcoin ETF (IBIT), the largest ETF, would change the dynamics of BTC supply in the future. Fahrer argued that 98% of all existing Bitcoin already costs more than $100,000, emphasizing that the current price is just the marginal trade. BlackRock’s actions will soon put this theory to the test.

As of February 23, IBIT held 124,535 BTC, equivalent to $6.35 billion. Looking at low-timeframe BTC price analysis, popular trader Skew highlighted the importance of support levels. These included the 88-period and 100-period exponential moving averages (EMAs) on the 4-hour chart at $50,017 and $49,654, respectively, as well as the 18-period EMA on the daily chart at $49,645. Skew suggested that the current price’s proximity to these levels indicated a potential trend inflection point, where momentum may soon increase. This could lead to a battle between buyers and sellers for control over Bitcoin’s price.

Bitcoin’s price continued to show weakness on February 23, with concerns over inflows to Bitcoin ETFs contributing to the consolidation. There was a notable increase in activity on February 22, and James Van Straten noted that normality had resumed with a significant inflow of $251 million into the Bitcoin ETFs. Thomas Fahrer predicted that BlackRock’s iShares Bitcoin ETF would affect BTC supply dynamics in the future. Trader Skew highlighted the importance of support levels and suggested that the current price was approaching a trend inflection point.