The US Spot Bitcoin ETF market is showing signs of recovery, with inflows rebounding strongly. Fidelity’s FBTC leads the trend, suggesting brighter days ahead for Bitcoin.
ETF Inflows Surge After a Gloomy Week
On December 26, US Spot Bitcoin ETFs recorded a significant inflow of $475.2 million. Fidelity’s FBTC led the way with $254.4 million, followed by ARK’s ARKB with $186.9 million and BlackRock’s IBIT at $56.6 million. This marks a sharp turnaround after an outflow of $1.51 billion between December 19 and 24, which had dampened market sentiment.
The renewed inflows suggest that institutional investors are regaining confidence in digital assets. Notably, the US Spot Ethereum ETF also recorded inflows of $117.2 million on the same day, with Fidelity’s FETH leading at $83 million.
Bitcoin Price Faces Short-Term Pressure
Despite the positive ETF inflows, Bitcoin’s price slipped by 3% to $94,975 as of December 26. Trading volume rose by 28%, with BTC hitting a 24-hour high of $97,784. However, BTC Futures Open Interest dropped 3% in a 4-hour window, reflecting bearish market sentiment.
Analysts predict that Bitcoin may face further short-term declines, potentially dropping to $60,000 due to recent volatility.
Long-Term Optimism for Bitcoin
While short-term forecasts remain mixed, many market experts remain bullish on Bitcoin’s long-term prospects. Institutional interest continues to grow, as seen in Bitwise’s new BTC ETF filing to track companies like MicroStrategy and Metaplanet.
Despite current challenges, Bitcoin’s strong fundamentals and renewed inflows into ETFs suggest that the flagship cryptocurrency could rebound soon, potentially reaching new highs.
