Bitcoin ETF Inflows Surge to 6-Week Highs as BTC Climbs Back Above $97K

Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the surge, accounting for $357 million of the inflows. BlackRock’s iShares Bitcoin Trust (IBIT) and Ark Invest’s ARKB followed closely, drawing $253 million and $222 million, respectively. This resurgence in ETF activity comes after weeks of record outflows, marking a significant shift in market sentiment.

Source: Patric H. via X

Patric H., a crypto analyst, noted the bullish sentiment among institutional investors, saying, “Big money is back to buying after the Christmas/year-end sell-off.”

Bitcoin keeps climbing higher and broke back above $97,000 in the first week of 2025, up 6% on the year-to-date as it consolidates after its New Year’s rally. Analysts pinpoint Bitcoin’s ability to take out the cryptocurrency’s 50-day simple moving average as one of the more key levels required to have the price see continued bullish momentum. Most predict it will be a short matter of time before Bitcoin once again breaks through the $100,000 price level and attempts to push through to new all-time highs. Bitwise predicts that Bitcoin will hit the $200,000 price level in 2025, for example.

Bitcoin (BTC) price chart. Source:Bitcoin Liquid Index (BLX) via Brave New Coin

However, some traders remain cautious. Analyst Scient expressed concerns about Bitcoin’s inability to breach the $99,000 resistance level, warning, “Unless we breach $99K and flip it to support, I think we will see lower prices in January.”

Short-term volatility remains a factor, with traders anticipating potential dips to the $90,000–$88,000 range. Despite this, broader sentiment leans bullish for the first quarter of the year, as noted by Daan Crypto Trades, who stated, “My bias for Q1 is bullish, so I’m not worried about any short-term movements.”

Beyond ETF inflows, on-chain metrics provide further evidence of growing confidence in Bitcoin’s long-term prospects. Over 48,000 BTC, valued at approximately $4.5 billion, were withdrawn from exchanges in the past week. Such withdrawals are typically associated with long-term holding, signaling a shift away from speculative trading.

Source: Ada Baguette via X

The Coinbase Premium Index, a key indicator of U.S.-based institutional demand, has rebounded above its 14-day simple moving average after hitting a two-year low in late December. Burak Kesmeci, an on-chain analyst, remarked, “As long as the Coinbase Premium Index remains above the SMA14, it will likely continue testing the positive zone.”

Bitcoin’s march toward the psychological $100,000 mark has fueled optimism among market participants. Currently trading at around $98,000, the cryptocurrency’s price momentum has revived speculation of a new bullish cycle. Financial experts like Robert Kiyosaki predict Bitcoin could soar to $175,000 or even $350,000 in 2025, driven by increased adoption from both institutional and retail investors. Bitwise concur, predicting that $200,000 is a realistic price target for Bitcoin in 2025.

Source: Bitwise

Despite this optimism, traders are wary of geopolitical factors, including the upcoming U.S. presidential inauguration, which could introduce short-term volatility. Regulatory developments, particularly regarding the SEC’s stance on cryptocurrency assets, are also being closely monitored for their potential impact on institutional behavior.

The surge in Bitcoin ETF inflows, coupled with robust on-chain metrics and strong price performance, suggests that Bitcoin is on the cusp of a new bullish phase. Fidelity’s dominance in ETF inflows underscores growing institutional confidence, while broader market trends indicate a shift toward long-term investment strategies.

As Bitcoin approaches the $100,000 milestone, it is clear that institutional demand, market fundamentals, the potential for another Trump Pump, and improving sentiment are aligning to create a potentially explosive year for the leading cryptocurrency.