Bitcoin and the broader crypto market have remained stable recently, with significant investor interest flowing into exchange-traded funds (ETFs) tracking the leading cryptocurrency. More than $590 million in inflows were recorded, continuing a six-day streak of positive market sentiment. This marks the first week-long inflow since late March and highlights Bitcoin’s growing appeal as a safe-haven asset among institutional and retail investors.
BlackRock’s IBIT Fund Sees Major Inflows, Ark’s ARKB Experiences Losses
BlackRock’s Bitcoin ETF, IBIT, attracted the largest share of these inflows, drawing nearly $970 million, while Ark Invest’s ARKB ETF saw a $200 million outflow. These contrasting trends highlight the varying investor sentiment toward different Bitcoin funds.
At the time of writing, Bitcoin has held steady above the $94,000 mark during Asian morning trading hours, with traders watching closely for a potential breakout. If Bitcoin surpasses this resistance level, many experts believe the cryptocurrency could be poised to make a significant move toward the long-anticipated $100,000 price target.
XRP, Ether, and Other Altcoins Remain Stable
Other major cryptocurrencies like XRP, Ethereum (ETH), Cardano (ADA), and Binance Coin (BNB) showed little movement, while Solana (SOL) experienced a 2% dip. Monero (XMR), on the other hand, faced volatility, dropping 8.5% after a dramatic 40% surge the previous day. This surge was linked to a hack where over $330 million in Bitcoin was exchanged for Monero, a privacy-focused coin.
Among mid-cap cryptocurrencies, Nexo (NEXO) saw an 8% increase after announcing plans to return to the U.S. market after a two-year regulatory hiatus, with a renewed focus on artificial intelligence applications.
Market Awaits U.S. Economic Data for Cues
Despite the influx of funds into Bitcoin ETFs, market sentiment remains cautiously optimistic as traders await key economic data in the coming days. Economic indicators like U.S. GDP figures and unemployment data will be scrutinized for signs of how the broader market might react to ongoing economic pressures, especially those related to tariffs.
Jeff Mei, COO at BTSE, explained that the current market momentum has sustained the gains from the previous week, with traders largely waiting for fresh economic signals. He also noted that the U.S. dollar has been weakening, which may explain Bitcoin’s growing appeal among institutional investors looking to diversify away from the greenback. The dollar index has fallen nearly 6% over the past month, marking its biggest decline since 2022.
Bitcoin and M2 Money Supply Correlation Gains Attention
A developing narrative among some traders is the potential correlation between Bitcoin’s price movements and the expansion of M2 money supply. As M2 increases, Bitcoin could see upward pressure, as investors seek to hedge against inflation. M2 encompasses cash, checking and savings accounts, and other easily accessible funds circulating in the economy.
Augustine Fan, Head of Insights at SignalPlus, acknowledged this emerging trend, though he stressed the complexity of the data behind it. “While we are not strict subscribers to this view, as there are many nuances behind the data, we are bullish on BTC in the medium term,” he said, attributing the outlook to expectations of monetary and fiscal easing in response to global economic slowdowns, particularly those aggravated by tariff issues.
The fluctuating dynamics of Bitcoin’s price, coupled with shifting economic conditions, have created a complex environment for crypto traders. While some remain cautious, the potential for further growth and the possibility of reaching $100,000 remain hot topics among market participants.