Bitcoin Surges Near $65,000 as ETF Inflows Hit Strongest Performance Since Mid-April

Bitcoin Surges Near $65,000 as ETF Inflows Hit Strongest Performance Since Mid-April​

Bitcoin showed resilience in the crypto market this week, climbing 3.28 percent over seven days and trading near the $65,000 mark, despite facing a turbulent period marked by security exploits and chain disputes. The price hovered around $64,925.18 as of the early August 10 trade, after briefly peaking near $65,350 in that session.

Institutional Demand Powers Bitcoin Rally​

The rally is significantly underpinned by robust institutional interest, particularly stemming from US spot Bitcoin and Ether ETFs. Akshat Siddhant, Lead Quant Analyst at Mudrex, reported that these ETFs collectively attracted around $1.1 billion in net inflows over the last week. This inflow total represents the strongest weekly performance recorded since mid-April.

Vikram Subburaj, CEO of Giottus, noted that while ETF inflows are encouraging, they do not confirm a definitive trend reversal yet. He stated that institutional demand has certainly strengthened the floor for crypto without having lifted the ceiling completely.

Inflation Data and Macro Factors Drive Market Sentiment​

The immediate future of Bitcoin is heavily tied to upcoming macroeconomic indicators. The next major test point for the market will be on August 12 when the US releases its July CPI inflation print. Siddhant further cautioned that a reading softer than the expected 3.42 percent year-over-year could relieve pressure on the Federal Reserve, potentially pushing Bitcoin above the $65,500-$66,000 resistance zone.

Conversely, if the inflation data comes in higher than anticipated, it could intensify fears regarding rate hikes and drive Bitcoin back toward the $63,000-$63,800 support band. Nischal Shetty, Founder of WazirX, maintained that while global macro indicators are mixed for crypto markets, they still support a constructive long-term environment.

Crucial Technical Hurdles Remaining for Price Breakout​

Despite the positive inflows and price action, market experts stressed the necessity of key technical confirmations before a clear upward trend can be established. Subburaj reiterated that Bitcoin must successfully hold the $63,000 cost-basis zone. Furthermore, it is crucial for the crypto asset to close convincingly above the $66,000 threshold.

Until these specific conditions are met, the current market state suggests a solidified floor of institutional support rather than a confirmed ceiling removal. This requires careful monitoring as the price navigates between these critical levels.

Cryptocurrency Market Movers and Sector Movement​

The crypto landscape saw varied movement across various tokens on the day. Pump.fun led the top gainers with an increase of 11.52 percent. Worldcoin also performed strongly, rising by 7.37 percent, while Canton gained 7.05 percent.

However, not all altcoins found favour. Audiera experienced a sharp plunge, falling 11.60 percent. MemeCore and Algorand also saw declines, with the former dropping 6.60 percent and the latter falling by 5.52 percent.