Bitcoin ETFs See $165.75M Inflows, Institutional Interest Grows

Investor confidence in Bitcoin ETFs has surged, marking the fifth consecutive day of inflows. This sustained inflow of capital into U.S. spot Bitcoin ETFs indicates a growing institutional interest in the cryptocurrency market. The total daily net inflows for these ETFs reached $165.75 million on March 20, with BlackRock leading the way with an inflow of $172.14 million. Other significant inflows were recorded by VanEck, Fidelity, and Grayscale Bitcoin Mini Trust, with $11.90 million, $9.19 million, and $5.22 million respectively. However, some ETF providers experienced outflows, including Bitwise, Grayscale Bitcoin Trust, and Franklin Templeton’s Bitcoin ETFs, which saw outflows of $17.40 million, $7.98 million, and $7.31 million respectively.

Despite the short-term volatility in the derivatives market, the continuous inflows into Bitcoin ETFs suggest that institutional investors remain bullish on Bitcoin. This institutional support could potentially spark a new Bitcoin price rally, despite the current pullback. The open interest-to-market cap ratio has increased, signaling higher market leverage and potential volatility. This could lead to new waves of volatility and potentially trigger mass liquidations if price movements become too sharp.

Market analysts suggest that Bitcoin’s price may be deliberately suppressed by large traders. Large blocks of sell orders, commonly known as “spoofing,” have appeared on exchange order books, keeping Bitcoin’s price contained within a specific range. This tactic creates the illusion of strong resistance and prevents upward momentum from building. Material Indicators has identified what they call “price suppression from Spoofy the Whale” with liquidity blocks positioned around $89,000.

The current price movement shows Bitcoin testing a long-standing resistance trendline. After reaching a 13-week high of $87,500 on March 20, BTC has pulled back 4.4% to around $84,000. This pullback has failed to maintain dominance at the 23.60% Fibonacci level at $84,841. Bitcoin is forming its second-highest price rejection candle, which could signal an extended pullback on short-term charts. Technical indicators are showing mixed signals. The MACD and signal lines have crossed negatively, potentially signaling a sell-off. On the 4-hour chart, Bitcoin’s pullback found support at the 50 EMA, which has prevented a sharper decline so far. However, the daily RSI remains slightly below 50. This indicates that bearish momentum could continue in the short term unless buying strength increases.

Liquidations in the crypto market are approaching $200 million over the last 24 hours. Long liquidations account for $131 million of this total, showing the impact of the recent price drop on leveraged traders. Bitcoin’s open interest has decreased by 4.45%, reaching a low of $52.81 billion. The long-to-short ratio has shown a subtle rise in bearish positions, now standing at 0.9861. Despite these bearish indicators, the funding rate continues to fluctuate. The open interest currently stands at 0.0051%, reflecting some bullish sentiment toward long positions despite the extra premium being paid.

Market analysis platform Alphractal has noted an increase in bearish positions within the Bitcoin market. According to their recent reports, whales have shifted from locked positions to new open short contracts as Bitcoin surpassed $87,000 in the short term. This shift in strategy by large traders could indicate a cautious approach to the current market conditions. The open interest-to-market cap ratio has spiked again, signaling an increase in market leverage, which could lead to new waves of volatility and potentially trigger mass liquidations if price movements become too sharp.