- Bitcoin ETFs saw $755M inflows on Jan 15, led by Fidelity’s $463M as BTC briefly surpassed $100K.
- Core CPI dropped to 3.2%, fueling a $755M inflow into Bitcoin ETFs and a BTC price rally above $100K.
- Fidelity’s Bitcoin ETF topped inflows with $463M as spot ETFs reversed a $1.2B outflow trend.
The cryptocurrency market experienced renewed optimism on January 15 as spot Bitcoin ETFs recorded significant inflows after releasing the US Consumer Price Index (CPI) data. Grayscale’s Bitcoin ETF (GBTC) was closely followed by Fidelity’s (FBTC), which recorded $463 million in net inflow, while Ark Invest’s ARKB gained $138 million. Bitcoin briefly reached past the $100,000 mark, showing positive market sentiment.
Spot Bitcoin ETFs Witness Net Positive Inflows
This marks a change from the previous four days of outflows, during which spot Bitcoin ETFs saw an inflow of $755m. Fidelity’s FBTC was the largest inflow, with a net positive flow, which had not been seen since March of the previous year. ARK Invest’s ARKB also performed well, and the daily inflows rose significantly compared to the previous trading periods.
Other Bitcoin ETFs, such as Grayscale’s GBTC and BlackRock’s iShares Bitcoin Trust (IBIT), also participated in the rally. Notably, trading volumes at IBIT stood at $2.35 billion, while for Fidelity’s FBTC, the trading activity was $284 million. Overall, there are no ETFs with outflows, which strengthens the market opinion.
Core CPI Data Sparks Optimism Across Financial Markets
The December CPI report showed data reflecting market expectations. The annual inflation rate dropped to 3.2%, lower than market forecasts. This decline in core CPI was positive for global equity and cryptocurrency markets. The S&P 500 index rose by more than 100 points in trading and increased its market capitalization by $900 billion during the trading session.
This positivity continued into the cryptocurrency market, propelling Bitcoin price past the $100,000 mark before experiencing a slight dip to $99,597. On-chain data showed that investment by wallets with 10 or more BTC was on the rise, suggesting that investors believed that the upward trend of Bitcoin was sustainable.
Bitcoin ETFs and Global Markets Implications
Interest in Bitcoin ETFs is reviving as more institutions enter the cryptocurrency market. While Fidelity and BlackRock grow their services globally, other markets like Thailand are preparing to approve their first Bitcoin ETFs. Bitwise Invest reported that nation-states are also making more inquiries about Bitcoin ETFs, with some considering moving their assets from government bonds into Bitcoin.
The trading volume for the 12 Bitcoin ETFs was $3.18 billion, which is a high increase from the previous trading session. The reported inflows and trading volumes have picked up due to the increased attractiveness of Bitcoin as an investment asset class due to positive market conditions.
