There has been a notable increase in weekly inflows into US spot Bitcoin ETFs, with cumulative inflows reaching $2.5 billion as of March 15, signaling growing confidence among institutional investors in the cryptocurrency market. The uptick in Wall Street’s interest in Bitcoin comes ahead of the Federal Open Market Committee (FOMC) interest rate meeting.
Spot Bitcoin ETFs Attract Notable Interest
Data from Farside Investors shows a significant increase in entries into US spot Bitcoin ETFs. According to the data, there was a net inflow of $198.8 million on March 15 alone, compared to the previous day’s net inflow of $132.7 million.
In particular, Fidelity’s spot ETF, FBTC, saw a significant increase in entries, surpassing BlackRock’s IBIT. A cooling off was observed in the outflows from Grayscale’s GBTC. Strong inflows throughout the week, totaling $2.56 billion, led to Bitcoin’s price reaching an all-time high of $73,750 on March 14.
The current situation indicates high institutional interest in the cryptocurrency king. However, investors continue to exercise caution ahead of the upcoming FOMC meeting and the interest rate decision, while ongoing inflation concerns increase uncertainty surrounding the Fed’s potential interest rate cuts.
Increased Volatility Expected Following Higher Inflation Data
Market analysts anticipate high volatility ahead of the FOMC meeting on March 19-20, in response to recent Consumer Price Index (CPI) and Producer Price Index (PPI) data pointing to higher-than-expected inflation. Despite the short-term high volatility expectations, Bitcoin is seen regaining momentum by showing strength. Currently, Bitcoin is trading above $69,000 after surpassing the $70,000 threshold in the last 24 hours.
While analysts express optimism about Bitcoin’s future performance, expectations related to the upcoming fourth block reward halving event also support this optimism. Although historical trends suggest a strong rally following the block reward halving, investors are proceeding cautiously due to macroeconomic uncertainties.
