US spot Bitcoin and Ethereum ETFs recorded $461.9M in inflows, showing a return of institutional demand.
Bitcoin briefly climbed above the $73,000 mark after a prolonged bout of weakness. The rebound quickly drew renewed attention from traders and analysts who were trying to figure out whether the recent selling pressure in the market is beginning to ease.
Data from HTX shows that Bitcoin rebounded strongly and broke through the $73,000 mark, and reached around $73,150 during the latest trading session. The move came shortly after the crypto dipped below $72,000, a decline that had raised concerns about a deeper correction. Note that, at the time of writing, Bitcoin is at $72,890.01, still 2.6% over the past 24 hours.
Market participants are closely watching liquidation levels in the derivatives market. According to data from CoinGlass, Bitcoin could trigger significant short liquidations if the price continues to rise.
Analysts predict that if Bitcoin climbs above $75,000, the cumulative short liquidation intensity across major centralized exchanges could reach approx $1.154 billion. Such a movement could create an upward momentum, as traders holding short positions would be forced to close their bets.
On the downside, liquidation pressure seems to be less intense in the immediate range. If Bitcoin falls below $72,000, the cumulative long liquidation intensity on major exchanges is estimated at around $334 million. A deeper drop below $71,000 would be required before the market sees stronger liquidation pressure on long positions, which could reach roughly $1.234 billion.
Liquidation charts, however, do not represent the exact number of contracts waiting to be liquidated. Instead, they illustrate clusters of liquidation intensity at specific price levels. These clusters highlight areas where price movements may trigger cascading reactions in the derivatives market.
When a price level displays a higher liquidation bar, it signals that reaching that level may create stronger market reactions. This happens because large groups of leveraged positions are concentrated around those points. As a result, sharp price movements can lead to rapid liquidations and further volatility.
At the same time, signs of improving demand have begun to appear in the spot market. Data shared by the blockchain analytics firm Glassnode indicates that outflows from U.S. spot Bitcoin exchange-traded funds are slowing down.
The firm noted that the 14-day net flow trend for these funds has turned positive.
This is an indication that selling pressure might be waning as Bitcoin stabilizes above the $70,000 range. Institutions’ appetite is still on the edge, but nascent expectations of accumulation have been forming early. That bounce occurred on top of a strong day of inflows into crypto ETFs as well. Market data shows that US spot Bitcoin ETFs and Ethereum ETFs recorded a combined $461.9M in net inflows during the latest trading session. It was the sector’s third consecutive day of positive flows. The re-emergence of inflows indicates that institutional investors could have assisted the recent market bounce. Nevertheless, there are some industry-wide voices that are hesitant about the sustainability of the rally. Arthur Hayes recently cautioned that Bitcoin’s price performance was still closely connected to that of the broader technology sector.
Hayes argued that the cryptocurrency still shows a strong correlation with U.S. software-as-a-service companies. Because of this connection, movements in traditional equity markets can continue to influence Bitcoin’s short-term direction.
He also suggested that the recent rebound may be a temporary recovery rather than a confirmed trend reversal. According to Hayes, investors may need to remain patient and wait for clearer macroeconomic signals before increasing their exposure to cryptos.
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