Bitcoin Storms Back to $70K, Defying Inflation Woes and Signaling Market Optimism

Amidst a negative US CPI report indicating rising inflation, Bitcoin has rebounded to $70K, defying market expectations. While equities markets initially declined, the crypto market displayed resilience, recovering after a brief dip. Traders remain active, with discussions surrounding the CPI report increasing. Bitcoin ETF net inflow has turned positive, with a significant increase on April 10.

Bitcoin Surges Back to $70,000 Mark, Defying Inflation Fears and Signaling Bullish Sentiment

In a resounding display of its resilience, Bitcoin has rebounded with vigor, reclaiming the $70,000 mark despite a dismal US Consumer Price Index (CPI) report that indicated a 3.5% inflation surge in March.

Initially, the unexpected inflation increase sent shockwaves through equities markets, triggering a precipitous decline. However, the crypto markets exhibited remarkable fortitude, bouncing back robustly after Bitcoin briefly dipped to $67.5K just before the CPI results were unveiled.

Traders have responded with astute awareness, fully cognizant of the potential impact of the CPI report on prices. Discussions surrounding the report have skyrocketed, reflecting a keen interest and deep understanding among market participants. Despite the initial sector-wide downturn, traders have displayed unwavering determination, with "buy the dip" calls gaining widespread traction while sell calls have remained relatively subdued.

Bitcoin ETF Net Inflow Turns Positive, Signaling Investor Optimism

According to data from Spotonchain, Bitcoin ETF net inflow on April 10, 2024, surged to an impressive +$124M, marking a significant increase compared to the previous trading day. Notably, the single-day outflow for the Grayscale Bitcoin Trust (GBTC) plummeted to a mere $17.5M, its lowest level in the past 32 trading days.

Furthermore, all 10 Bitcoin ETFs experienced single-day inflows/outflows of less than $80M, indicating a generally positive sentiment among investors.

Spot Trade Volume Surges, Recalling Bullish Market Trends

Delving deeper into the data provided by Glassnode, we observe a marked surge in spot trade volume in Bitcoin markets since the launch of US Spot ETFs in early January 2024. This surge culminated in a peak of approximately $14.1 billion in daily volumes when the market reached its all-time high (ATH) of $73K in mid-March.

While spot trade volume has moderated in recent weeks, currently hovering around $7 billion per day, it remains substantial, reminiscent of the levels witnessed during the 2020-2021 bull market.

Conclusion

Bitcoin's resurgence to the $70,000 mark, coupled with positive ETF inflows and elevated spot trade volume, paints a compelling picture of bullish sentiment in the crypto markets. Despite ongoing concerns about inflation, Bitcoin has once again demonstrated its resilience and potential as a store of value. Investors and traders alike are taking notice, embracing the "buy the dip" mentality and expressing confidence in the long-term prospects of Bitcoin. As the market continues to evolve, it remains imperative to conduct thorough research and exercise prudent risk management while navigating the dynamic crypto landscape.