Bitcoin experienced a temporary lull in institutional investment, leading to a brief slowdown in inflows to spot Bitcoin exchange-traded funds (ETFs). Despite this, Bitcoin’s price struggled around the $51,000 mark, with bulls trapped in a narrow trading range for over a week.
Inflows into Bitcoin ETFs saw a notable decline, with Feb. 21 even witnessing a net outflow of $36 million. However, activity picked up on Feb. 22, with net inflows of over $250 million, despite outflows from the Grayscale Bitcoin Trust (GBTC).
James Van Straten from CryptoSlate noted the return to normality with a $251 million inflow into Bitcoin ETFs. Thomas Fahrer, CEO of Apollo, highlighted the potential impact of BlackRock’s iShares Bitcoin ETF (IBIT), suggesting it could alter Bitcoin’s supply dynamics.
As of Feb. 23, IBIT held 124,535 BTC, valued at $6.35 billion. Meanwhile, Bitcoin’s price approached key support levels, including the 88-period and 100-period exponential moving averages (EMAs) on the four-hour chart, and the 18-period EMA on the daily chart.
Popular trader Skew suggested that while the uptrend remained intact, the current price level was crucial, with momentum likely to pick up soon. Traders were closely monitoring price movements around these support levels for potential shifts in market dynamics.