Bitcoin Rises to $71,200 as ETFs Clock Second Best Day of Inflows

Bitcoin surged past $71,000 as ETFs saw their second highest day of inflows on record.

Bitcoin was trading around around $71,200 late on Tuesday as spot bitcoin exchange-traded funds (ETFs) saw $886.6 million worth of daily inflows – the second best day on record five months after the funds launched. 

Fidelity Wise Origin Bitcoin Fund (FBTC) led the pack, recording $387.7 million inflows on June 4, followed by BlackRock’s iShares Bitcoin Trust (IBIT) which saw $274. Million inflows, according to data from Farside Investors.

The top ten spot bitcoin ETFs have seen fairly consistent inflows over the last two weeks, but interestingly, Grayscale’s GBTC, which has seen $17.8 billion in outflows since converting to an ETF, also saw a rare day of $28.2 million in inflows. 

Bitcoin has traded largely sideways for the last two weeks, and the $70,000 mark has emerged as a crucial physiological level in the eyes of traders. With the asset now breaching this level and inching towards its all-time high, some traders have started to revise their price targets for bitcoin upwards. 

“In previous bull markets, after 570+ days from the bottom, we saw nothing but increased volatility to the upside If we match that again this cycle, brace yourself for the next year of price action,” wrote one pseudonymous crypto trader on X.

Whether this optimism was reflected in the derivatives market was not immediately apparent, based on funding rate data from market intelligence platform Decentrader, which shows the   funding rate hovering at around 10%.

A high funding rate is typically indicative of bullish market sentiment, with traders willing to pay more to maintain long positions.

Around $115 million has been liquidated over the last 24 hours, with $74 million short positions liquidated.