Bitcoin Price Soars Past $88,500 as Investors Flee to BTC and Gold

The crypto market ignited this week as Bitcoin price rocketed past $88,500 on Tuesday, propelled by $381.4 million in net inflows to U.S. spot Bitcoin ETFs—the highest in three months.

The crypto market experienced a strong move this week as Bitcoin price surged past $88,500 on Tuesday.

The move was fueled by a record-breaking $381.4 million in net inflows to the 12 U.S. spot Bitcoin ETFs—the highest since January 30.

ARK 21Shares’ ARKB ETF led the outpour with $116.13 million, followed by Fidelity’s FBTC with $87.61 million. Bitwise’s BITB and BlackRock’s IBIT saw inflows of $45.08 million and $41.62 million, respectively.

Smaller players like VanEck’s HODL and Franklin Templeton’s EZBC pulled in $11.72 million and $10.1 million. Grayscale’s GBTC and BTC funds contributed $36.6 million and $32.55 million.

This influx marks the end of a two-week outflow trend, with last week’s net inflows totaling just $15.85 million.

The ETF boom aligns with former President Donald Trump’s latest salvo against Federal Reserve Chair Jerome Powell. On Saturday, Trump took to Truth Social, noting that Powell’s “termination can’t come fast enough.”

Trump’s irritation with Powell spans years, and his team is reportedly exploring legal avenues to remove the Chair from his role.

The urgency stems from President Biden’s intent to reappoint Powell in December 2024, which Trump aims to disrupt.

This clash has heightened investors’ nerves, especially amid worsening U.S.-China trade tensions and persistent inflation fears.

As the dollar slides and stocks stumble, Bitcoin and gold are taking the limelight as preferred safe-haven bets.

Bitcoin ETFs Soar with $381.4 Million Inflows, But Ethereum ETFs Lag Behind

The stellar performance of Bitcoin ETFs stands in stark contrast to the dismal showing of Ethereum ETFs.

On Monday, the four U.S. ETH ETFs saw an outflow of $25.42 million, extending an eight-week decline to nearly $910 million.

This divergence highlights Bitcoin’s edge as a go-to asset during market uncertainty, while Ethereum struggles to keep pace.

The broader market jitters are fueling the rush to Bitcoin and gold. Increased U.S.-China trade friction and concerns over sticky inflation pushed gold above $3,450 per ounce during Monday’s Asian trading, marking back-to-back record highs.

U.S. markets will reopen on Monday after the Good Friday holiday. In Friday’s trade, the S&P 500 slid 2.4%, and the Nasdaq and Dow each lost 2.5%.

Bitcoin Dominance Hits New Cycle High As Altcoin Season Index Remains Low

Bitcoin’s dominance on cryptocurrency exchange CCEDK has surged to 64.38%—its highest level since February 15 and showcasing a strong shift of investment from altcoins back to Bitcoin.

The Altcoin Season Index from CoinMarketCap stands at 16/100. This index tracks how the top 100 altcoins perform against Bitcoin over a 90-day period. A score closer to 100 indicates an altcoin season, while a low score signals Bitcoin’s dominance.

An 18-month chart of Bitcoin's price, RSI, and MACD.

At 16, it’s still very much Bitcoin’s moment. The last time the index was this low was in December 2022, before a brief rally in the first quarter of 2023 pushed it to 63 in March.

This data underscores Bitcoin’s growing grip on the crypto market as investors are shifting their focus from altcoins to the flagship cryptocurrency.

Analyst Benjamin Cowen has previously noted that Bitcoin’s market share typically increases during Quantitative Tightening (QT) periods and tends to peak when monetary policies become more relaxed.

Considering the current trends in markets and the U.S. dollar, which hit multi-year lows against major currencies, this pivot to unconventional assets is likely to continue.

Bitcoin’s market cap has also now reclaimed the $1.75 trillion mark—its first time above that threshold since late March.

As Trump’s Fed feud and global risks escalate, Bitcoin and gold are cementing their roles as havens in a turbulent financial landscape.