Flows into the U.S. spot Bitcoin ETF market have reversed following a period of outflows and minimal inflows.

The Bitfinex Alpha report indicates a new trend of significant net inflows into spot Bitcoin ETFs, highlighting renewed investor interest and confidence in the digital asset's potential.

Reversal of Bitcoin ETF Flows

Last week, spot Bitcoin ETFs experienced a collective net inflow of $948.3 million, a substantial increase from the $228.5 million inflows recorded the previous week. Notably, there were no outflows last week, whereas the week before saw investors withdraw up to $111.7 million from these products.

This reversal in ETF flows aligns with Bitcoin's bullish trend, which saw the cryptocurrency achieve its highest daily close in five weeks. On May 15, Bitcoin rebounded significantly from its lows, driven by favorable regulatory developments and a softer-than-expected U.S. Consumer Price Index report.

Bitfinex noted that the interplay between macroeconomic indicators and Bitcoin’s price dynamics underscores the cryptocurrency’s sensitivity to economic shifts and policy changes. The report predicts that passive demand, primarily driven by systematic investment plans, will likely sustain the new trend of inflows into spot Bitcoin ETFs in the near term.

At the time of writing, data from CoinMarketCap showed Bitcoin trading at $69,750, up 13% over the past week. Bitfinex suggests that this rally might indicate that Bitcoin has established a market bottom.

Sustaining Bitcoin’s Trajectory

Additionally, Bitfinex reported that Bitcoin’s current on-chain support level is $60,000. If the passive inflows into spot ETFs continue, Bitcoin is expected to maintain a range above $60,000-$62,000, with analysts predicting either a ranging market or further price increases from there.

Bitcoin's stability is also supported by the slowed distribution from long-term holders, indicating they are not selling at current prices. Moreover, new whales have been acquiring Bitcoin at an average cost of $60,000, and long-standing whales have shown consistent activity at this price, suggesting it has become a significant support level.