Bitcoin ETFs Draw $411M After BTC Hits $75K, But Analysts Urge Caution
In brief - Bitcoin ETFs saw inflows of $411 million Tuesday, as Bitcoin topped $75,000. - BTC surged 10% from around $68,100 to $75,600 in two weeks, fueled by easing geopolitical tensions. - A temporary de-escalation of the Iran conflict and net liquidity rebound acted as key drivers, Decrypt reported.
U.S. spot Bitcoin ETFs continue to attract significant inflows in April, with experts citing easing geopolitical tensions and improving market liquidity as key drivers behind the leading cryptocurrency's recent price rally.
Bitcoin ETFs drew in $411 million on Tuesday, marking the second-largest inflow of the month behind the $484 million recorded on April 4, according to SoSoValue data. The inflow coincides with the leading crypto's recent rally in April.
Bitcoin surged from around $68,100 on April 1 to $75,600 on Tuesday, noting over 10% gains, according to CoinGecko data. Over the past 24 hours, it has dropped by around 1% and is currently trading at around $73,860.
According to Tim Sun, senior researcher at HashKey Group, there are two reasons for this bullish momentum.
“A temporary easing of geopolitical conflicts, which spurred a marginal recovery in global risk appetite, is the first factor,” Sun told Decrypt. Sun further explained that the significant rebound in net market liquidity noted since early April also provided strong support. “Consequently, the combination of recovering risk appetite and warming liquidity pushed Bitcoin rapidly above the $70,000 mark and even tested the previous high of $75,000,” he added.
That shift is visible in the market metrics. The improved investor risk appetite can be seen across various indicators, as highlighted in a recent Decrypt report.
Downside risks remain
Experts remain skeptical that a sustained uptrend will emerge from this.
“It’s important to keep the broader context in mind,” Georgii Verbitskii, derivatives trader and founder of Bitcoin options protocol Myriad, told Decrypt. “The market still looks weak and unstable, more consistent with a bearish or transitional phase than a new bull run.” He added that investor expectations for large, sustained moves “should remain low,” and investor sentiment remains fragile.
The mixed signals are reflected on prediction market Myriad, owned by Decrypt's parent company Dastan. Users now see a 59% chance that Bitcoin's next major move will be a pump to $84,000, down from 64% a day earlier. Meanwhile, the probability of a spring crypto "bloom" has risen to 51%, up from 35% on April 1.
Other downside risks that could undo Bitcoin’s push to $75,000 include the U.S. tax season, typically associated with lower liquidity and selling pressure. “Based on the Treasury’s financing and cash management rhythm, the Treasury General Account’s balance usually spikes around the April tax deadline, which temporarily drains liquidity from the market,” Sun explained.
If the $73,000 to $75,000 range holds, and downside risks do not multiply, Sun highlights $79,000 and $84,000 as the next potential targets for Bitcoin.
