BlackRock’s iShares Bitcoin Trust (IBIT) ETF recorded a jaw-dropping inflow amounting to $597 million inflow which indicates renewed confidence in Bitcoin. This recent event comes at a time when the crypto market is currently battling with price fluctuations and regulatory uncertainties.
The inflow, which represents one of the largest investments into a Bitcoin-linked product in recent months, underscores growing interest in institutional adoption of the leading cryptocurrency. Analysts believe this could spark a much-needed boost for Bitcoin’s market sentiment.
Institutional Investors Lead the Charge
The $597M inflow highlights the role institutional investors play in stabilizing the crypto market. BlackRock, the world’s largest asset manager, has long been a key player in driving traditional market trends, and its entry into the Bitcoin space has reignited hopes for broader adoption.
Experts suggest that such substantial inflows may push Bitcoin prices higher as confidence in the digital asset’s long-term potential grows. Furthermore, the event strengthens speculation about the approval of spot Bitcoin ETFs, which could further solidify Bitcoin’s position in mainstream finance.
Bitcoin Drops 5% Amid Strong U.S. Economic Data
Bitcoin’s price has fallen by over 5%, trading at $96,259, as strong U.S. economic indicators bolster the dollar and dampen crypto sentiment. The U.S. Bureau of Labor Statistics reported a rise in JOLTS job vacancies by 259,000 to 8.098 million in November 2024, while the ISM Services PMI exceeded expectations, signaling economic resilience.
The U.S. Dollar Index (DXY) remains strong, holding above 108.50 after a brief dip, while the 10-year U.S. Treasury yield surged to a 35-week high of 4.68%, reducing hopes for additional Federal Reserve rate cuts.
Despite the impressive performance of BlackRock’s Bitcoin ETF, Bitcoin’s price continues to slide, with a 24-hour low of $96,132 and a high of $102,022. Trade volume has also dropped by 23% in the last 24 hours, reflecting reduced market activity amid economic uncertainty.
