In the U.S. markets, a significant increase in Bitcoin $84,487 ETF investments was observed, despite the unnoticed impact of Trump’s reciprocal tariffs. Market participants noted that they took the opportunity to purchase at lower price levels, resulting in a net investment inflow of $220 million, which compensated for the sell-off experienced earlier in the week.
Revitalization in Bitcoin ETF Investments
While negative cash flows were recorded during the first two days of the week, net investments in ETFs reached $220 million again on Wednesday, April 2. Institutions like Fidelity and Ark Invest led the inflows with contributions of $119 million and $130 million, respectively. In contrast, the iShares Bitcoin Trust, managed by BlackRock, experienced outflows totaling $116 million.
Increasing Demand from Institutional Investors
The interest of institutional investors in Bitcoin is witnessing a resurgence following a prolonged market fluctuation. The total Bitcoin reserves among 75 large publicly traded companies in the U.S. reached 696,456, with eight firms adding a total of 26,303 Bitcoin over the past week. This trend reflects a strengthening confidence in long-term values.
Price Volatility and Uncertainty
Following the implementation of Trump’s tariffs, Bitcoin experienced significant volatility. The price fell from $88,000 to $81,000, while daily trading volume surged by 85%, reaching $54 billion. Current data shows Bitcoin trading at $83,394, with a market capitalization of $1.65 trillion.
In light of these developments in the crypto markets, market analysts assessed potential price trends. They emphasized that breakouts on hourly charts would determine the next significant market movements.
Crypto analyst Ali Martinez stated, “Bitcoin is currently fluctuating between $86,900 and $84,800. The direction of the breakout on the hourly chart will determine the next major price movement.”
The increase in institutional purchases provides insights into the current market situation and long-term expectations. Market participants indicated that close monitoring of technical levels would continue.
The overall volatility in the market may prompt investors to reassess their risk appetites and strategic approaches. They highlighted the need to monitor buying opportunities and risks arising from fluctuations.