The Bitcoin market is witnessing a renewed wave of institutional interest as spot Bitcoin ETFs recorded a massive inflow of $755 million on Wednesday. This surge follows the latest Core Consumer Price Index (CPI) drop to 3.2%, which signaled cooling inflation and fueled a rally in both the traditional and crypto markets.
With Bitcoin briefly surpassing $100K, the big question remains: Can BTC sustain this bullish momentum and set new all-time highs (ATH)?
Bitcoin ETF Inflows Resume – Institutional Demand Returns
After four consecutive days of outflows, spot Bitcoin ETFs have made a strong comeback. The biggest contributor to Wednesday’s inflows was Fidelity’s FBTC, which alone accounted for $463 million. Following closely was Ark Invest’s ARKB, adding $138 million.
Breakdown of ETF Inflows:
- Fidelity Bitcoin ETF (FBTC): $463 million
- Ark Invest Bitcoin ETF (ARKB): $138 million
- BlackRock’s iShares Bitcoin Trust (IBIT): $31 million
- Total ETF inflows: $755 million
Although BlackRock’s IBIT recorded a relatively smaller inflow of $31 million, it dominated in trading volumes, surpassing $2.35 billion, compared to Fidelity’s $284 million.
Bitcoin ETF Demand Expanding Internationally
The surge in U.S.-based Bitcoin ETFs is spilling over into global markets. BlackRock recently launched a Bitcoin ETF in Canada, and Thailand is now in discussions to approve its first Bitcoin ETF as institutional demand continues to grow.
According to Bitwise CEO Hunter Horsley, even nation-states are exploring Bitcoin ETF investments, indicating that BTC is being considered as a reserve asset alternative to foreign government bonds.
“We just provided some information for a nation-state asking about Bitcoin ETFs. They are considering moving some exposure from foreign currency government bonds into BTC,” – Hunter Horsley, CEO of Bitwise.
Core CPI Drop Boosts Market Sentiment
The December CPI report revealed that the Consumer Price Index increased 2.9% year-over-year, in line with expectations. However, the Core CPI, which excludes food and energy prices, fell to 3.2% (lower than the anticipated 3.3%).
This lower-than-expected inflation data sparked optimism across global markets:
🔹 The S&P 500 surged by 100+ points, adding $900 billion in market capitalization.
🔹 Crypto markets responded with Bitcoin soaring past $100K, driven by strong ETF inflows.
Will Bitcoin Hold Above $100K and Hit a New ATH?
Bitcoin’s rally isn’t just speculation—it’s backed by strong on-chain fundamentals. According to Santiment, wallets holding more than 10 BTC have resumed accumulation after a temporary slowdown in December and early January.
At the same time, retail investors have been cashing out, leading to a decline in non-empty wallets. This suggests that large investors (whales) are taking advantage of retail sell-offs to accumulate BTC at discounted levels.
Key On-Chain Data Insights:
✅ Increased accumulation by whales holding 10+ BTC
✅ Decline in non-empty wallets as retail traders take profits
✅ Bitcoin ETF demand rebounding strongly
As of now, Bitcoin is trading at $99,597, up 2.34% in the last 24 hours, with daily trading volumes reaching $58 billion (+5.38%). According to Coinglass, $83 million in liquidations occurred in the last 24 hours, with $58 million coming from short positions.
Final Thoughts: Is a New Bitcoin All-Time High Imminent?
The combination of rising Bitcoin ETF inflows, strong institutional demand, and cooling inflation paints a bullish picture for Bitcoin’s long-term outlook. If the current buying momentum continues, Bitcoin could soon retest and surpass its previous ATH, setting new price records.
Will BTC break past $110K in the coming weeks? Stay updated with Kenya Crypto Magazine for the latest insights!
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