US spot Bitcoin exchange-traded funds (ETFs) have finally snapped a grueling losing streak, but can this return of institutional capital sustain a climb back above $80,000?
After visiting multi-week lows near $62,000, the Bitcoin price has staged a robust 8% recovery over the past 48 hours that has been supported by a convergence of macro catalysts and a return of institutional appetite in the form of massive spot ETF inflows.
Bitcoin price touched an intraday high above $70,000 during Wednesday’s New York session, marking its strongest performance since early February.
The recovery began earlier in the week when market sentiment was bolstered by President Donald Trump’s State of the Union address.
During the speech, the two-time United States President painted an optimistic picture of the economy, highlighting “plummeting inflation” and a 1.7% decline in core inflation figures over the final months of 2025.
Crypto investors perceived it as a risk-on pivot, having interpreted the administration’s emphasis on low inflation and strong employment as a signal of underlying economic resilience, prompting a return to risk assets.
Meanwhile, a landmark Supreme Court ruling that curtailed the administration’s use of emergency powers under the IEEPA to impose reciprocal tariffs briefly eased fears of further escalation in global trade tensions.
Although a separate 10% global tariff was later introduced under different authority, the initial legal setback for the “reciprocal” plan helped cool immediate volatility.
As a result, the Bloomberg Dollar Spot Index edged lower, providing a vital tailwind for Bitcoin, which historically benefits from dollar softness.
Subsequently, a blowout Nvidia earnings report the following day added another layer of confidence to the market, clearing previous anxieties around excessive AI spending and proving that the infrastructure bull market remains intact.
As the macro-economic clouds eased, institutional capital that has been sidelined over the past month returned in force.
Bitcoin ETFs see over $760m in inflows in 2 days
Bitcoin’s latest recovery has been supported by a reversal in the ETF market, which saw a staggering $506.5 million in net inflows on Wednesday alone.
According to data from SoSoValue, the two-day total now stands at approximately $765 million, following a $257.7 million inflow on Tuesday.
The back-to-back gains mark the first sustained and strong stretch of positive flows after five consecutive weeks of net redemptions that drained roughly $3.8 billion from the sector.
Every one of the 11 active US spot Bitcoin ETFs recorded either net buying or flat flows on Wednesday, with no redemptions reported across the board.
BlackRock’s iShares Bitcoin Trust (IBIT) once again dominated the ledger, attracting $297.4 million on Wednesday and accounting for nearly 60% of the day’s total.
Grayscale’s Bitcoin Trust (GBTC), which has historically carried the largest cumulative net outflow among spot ETFs at roughly $25.9 billion, posted a notable $102.5 million inflow.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) added $30.1 million, while Bitwise’s BITB brought in $39.4 million. Smaller issuers, including Invesco’s BTCO, rounded out the positive tally.
Trading volumes across Bitcoin ETFs rebounded above $4.3 billion, the highest since early February, reflecting renewed participation as price reclaimed the $68,000 level.
The flow reversal has also nudged weekly totals into positive territory at roughly $560 million, putting the ETF complex on track for its first net inflow week in over a month.
Can ETF demand fuel a push back toward $80,000?
The immediate technical picture now hinges on whether this demand persists long enough to flip key resistance levels into support.
Bitcoin is currently hovering just above the 200-week exponential moving average near $68,300.
Analyst Rekt Capital has cautioned that historical price action shows such rebounds can morph into post-breakdown retests unless the weekly close decisively reclaims the level.
A sustained close above the EMA would mark a structural shift and invalidate the recent bearish framework.
On lower time frames, traders are watching the 50 EMA on the 4-hour chart around $68,000 and the 20-day EMA near $69,200.
A clean break and hold above these levels could open the door toward a deeper liquidity sweep.
Meanwhile, data from CoinGlass shows roughly $2 billion in ask orders clustered between $72,450 and $75,000.
If bulls manage to push through $75,000, analysts warn that a cascade of short liquidations could follow, potentially accelerating price action toward the $80,000 zone where the next major liquidity pocket resides.
Meanwhile, fellow trader AlphaBTC has argued that Bitcoin’s “liquidity hunt has only just started,” suggesting that, absent a negative macro catalyst, higher levels are likely to be tested over the coming weeks.
Other market participants have emphasised that recent gains are being driven less by retail speculation and more by ETF inflows and short covering, framing the move as institutional accumulation paired with a technical breakout.
Still, caution remains warranted. The Fear & Greed Index has recovered from single digits into the low teens but remains firmly in “fear” territory.
If Bitcoin price fails to hold above the $68,000 level, traders may interpret the recent recovery as a fakeout, opening the door for renewed selling pressure that could drag prices back toward the $66,850 support zone and potentially retest the February lows near $60,000 if momentum deteriorates further.
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