Inflows into US-based spot Bitcoin exchange-traded funds (ETFs) have reversed following a period of outflows and minimal inflows, according to the Bitfinex Alpha report.

The recent trend of substantial net inflows into these ETFs indicates renewed investor interest in the products and confidence in the digital asset's potential. Last week, spot Bitcoin ETFs experienced a combined net inflow of $948.3 million, a significant increase from the $228.5 million inflow recorded the previous week.

Interestingly, there were no outflows last week, compared to withdrawals of up to $111.7 million the week before. This reversal in ETF flows coincides with Bitcoin's upward trend, culminating in its highest daily close in five weeks. Bitcoin's rebound from its recent lows was largely driven by positive regulatory developments and a milder-than-anticipated Consumer Price Index report in the US. Bitfinex suggests that passive demand, particularly from systematic investment plans, is expected to sustain the influx into spot Bitcoin ETFs in the foreseeable future.

Bitcoin is currently trading at $69,750, up 13% over the past week, indicating a potential market bottom according to Bitfinex. Additionally, Bitfinex notes that Bitcoin's on-chain support level is currently at $60,000. As long as inflows into spot ETFs persist, Bitcoin is likely to maintain a range above $60,000-$62,000, with the possibility of a ranging market or further price increases from there. The stability of Bitcoin is further supported by the decreased distribution activity among long-term holders, suggesting confidence in current price levels.

Moreover, both newly emerging whales and long-standing ones have shown consistent activity around the $60,000 mark, indicating its significance as a support level.