Spot Bitcoin ETFs saw a massive surge in inflows on March 20, jumping over 1,300% in a single day after the U.S. Fed decided to keep interest rates unchanged, a move that helped ease market jitters surrounding inflation and broader economic uncertainty.
According to data from SoSoValue, 12 spot Bitcoin ETFs collectively pulled in $165.75 million in net inflows on Thursday, a huge leap compared to just $11.8 million the day before. It also marked the fifth straight day of positive inflows, with nearly $700 million entering Bitcoin ETFs over that period.
BlackRockโs IBIT led the charge with a whopping $172.14 million in net inflows, bouncing back after a day of zero movement. Other players like VanEckโs HODL, Fidelityโs FBTC, and Grayscaleโs mini Bitcoin Trust also saw more modest gains of $11.9 million, $9.19 million, and $5.22 million, respectively.
However, not everyone benefited. Funds like Bitwiseโs BITB, Grayscaleโs ETHE, and Franklin Templetonโs EZBC saw investors pulling out nearly $32.7 million altogether, showing that sentiment still varies across providers.
The surge in ETF demand comes after a rough five-week stretch of outflows. Investors had been holding back due to concerns over trade war talk, rising geopolitical tensions, and macro uncertainty. But Wednesdayโs Fed meeting brought some relief.
Fed Chair Jerome Powell signaled a more dovish tone, suggesting that inflationary pressure, especially from potential Trump-era tariffs, may be temporary. That opened the door to possible future rate cuts, sparking optimism in risk-on markets like crypto.
Bitcoin responded quickly, shooting up 4.5% to $85,786 and even briefly hitting $87,431. Ethereum and Solana joined the rally with 4% and 6% gains, respectively. The total crypto market cap climbed 3% to $2.947 trillion, while futures markets saw $355 million in liquidations, mostly from short positions.
Adding to the bullish sentiment was yesterdayโs SEC announcement confirming that mining activities for Proof-of-Work cryptocurrencies like Bitcoin, Litecoin, and Bitcoin Cash wonโt fall under current securities laws.
However, when writing, Bitcoin (BTC) was down 2% in the last 24 hours, exchanging hands at $84,165 per coin.
While ETF inflows signal a resurgence of demand for regulated BTC exposure, analysts remain divided on Bitcoinโs short-term trajectory.
Analyst RJT_WAGMI points out that Bitcoin is hanging right at a crucial technical level, testing a descending trendline while butting heads with the 100-day moving average and the Ichimoku Cloud. The analyst noted that a breakout from the zone could trigger a strong rally, but if Bitcoin gets rejected here, it may lead to a downside move.
Trader Great Mattsby offers a bigger picture, noting that Bitcoin is still tracking within a long-term upward logarithmic trend channel, hinting the next major peak might not arrive until 2025-26 โ so there could still be room to run.
Meanwhile, CryptoQuant CEO Ki Young Ju brings a macro lens, arguing that while retail demand is strong, especially via ETFs, it doesnโt reflect on-chain like it used to.
He believes the bull cycle might technically be over, not in a crash sense, but more that it could take another 6 to 12 months for Bitcoin to punch through its all-time high, thanks to tight liquidity and broader economic conditions.
