The U.S. spot Bitcoin ETF market has witnessed a remarkable reversal in flows, transitioning from a period of outflows and minimal inflows to a new trend of significant net inflows, as reported by the Bitfinex Alpha report. This shift underscores renewed investor interest and confidence in the potential of the digital asset, Bitcoin, to deliver substantial returns and drive market growth.

Last week, spot Bitcoin ETFs collectively experienced a 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 trajectory, which culminated in the cryptocurrency achieving its highest daily close in five weeks. On May 15, Bitcoin rebounded significantly from its lows, buoyed by favorable regulatory developments and a softer-than-expected U.S. Consumer Price Index report.

Bitfinex emphasized 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, providing a solid foundation for future growth and stability.

To sustain Bitcoin's positive trajectory, 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 that will help propel Bitcoin's growth in the coming weeks and months.