Bitcoin ETF Inflows Surge to 6-Week Highs as BTC Reclaims $97K
Bitcoin’s promising start to 2025 is showing signs of strength as BTC reclaims the $97,000 level, supported by a notable resurgence in Bitcoin ETF inflows. Institutional investors injected $908 million into U.S. spot Bitcoin ETFs on January 3, marking a six-week high and reversing recent outflows.
Bitcoin Holds Key Support Levels
Bitcoin (BTC) began the new year with a recovery that saw its price gain over 6% year-to-date, reclaiming its 50-day simple moving average (SMA)—a critical indicator for continuing bullish momentum.
“$BTC closing strong and sustaining momentum from here,” noted trader Skew in a post on X (formerly Twitter) on January 3.
However, market sentiment remains cautious. Analysts highlight $99,000 as a pivotal level for flipping resistance into support.
- Scient, a crypto trader, remarked: “Unless we breach $99k and flip it to support, I think we will see lower prices in January.”
- Another trader, Crypto Tony, predicted a relief bounce before a potential retracement to the $90,000-$88,000 zone.
Short-Term Volatility Meets Long-Term Optimism
While Bitcoin’s short-term movements could face turbulence, many analysts maintain a bullish outlook for Q1 2025.
“Not expecting much movement during the weekend for BTC. Alts might see some action,” observed Daan Crypto Trades, hinting at possible buying opportunities during minor dips.
The CME Bitcoin futures closing price, a frequent price magnet for the spot market, will play a crucial role in determining Bitcoin’s trajectory in the coming trading week.
Bitcoin ETF Inflows Signal Institutional Confidence
In a striking turnaround, U.S. Bitcoin ETFs experienced a $908 million net inflow on January 3, signaling renewed institutional interest. This development coincided with the 16th anniversary of Bitcoin’s genesis block, amplifying its symbolic significance.
- Fidelity Wise Origin Bitcoin Fund (FBTC): Led the charge with $357 million in inflows.
- iShares Bitcoin Trust (IBIT): Secured $253 million, reinforcing its position as a major player.
“Big money is back to buying after the Christmas/year-end sell-off,” commented crypto trader Patric H on X.
Coinbase Premium Index Indicates U.S. Buyer Strength
On-chain metrics further support the bullish narrative. The Coinbase Premium Index, which measures the price difference between BTC on Coinbase and Binance, rebounded above its 14-day simple moving average (SMA) for the first time in nearly a month.
“This suggests that U.S.-based buyers could exert stronger influence over Bitcoin’s price trajectory,” noted Burak Kesmeci, an analyst at CryptoQuant.
A Bullish Start with Cautious Optimism
With Bitcoin holding its ground at $97,000, ETF inflows hitting multi-week highs, and on-chain metrics reflecting increasing U.S. buyer activity, BTC’s early 2025 performance has reignited market confidence.
However, traders are keeping an eye on critical resistance levels like $99,000 while bracing for potential retracements. As Wall Street enters its first full trading week of the year, Bitcoin’s next moves could set the tone for the months ahead.
Stay tuned to Cointelegraph for updates on Bitcoin’s price action, institutional flows, and market dynamics shaping the crypto space in 2025.
