Bitcoin experienced a significant price surge following the release of disappointing US jobs data, indicating a potential shift in the Federal Reserve’s approach. This increase in interest comes as the international demand for US Bitcoin exchange-traded funds (ETFs) continues to grow, with Grayscale’s Bitcoin ETF seeing its first inflows in 77 days.
The value of Bitcoin rose sharply, reaching $63,261.61 in just one day, marking a 6.63% increase. This notable bounce follows a slight increase of 0.60% the previous week, suggesting a potential reversal from the previous bearish trend.
The unexpected surge in Bitcoin’s price can be attributed to the recent disappointment in US non-farm payroll (NFP) data, which has raised the possibility of a more accommodative stance from the Federal Reserve. This news has sparked an upward trend in investor confidence, leading to a reversal in the seven-day trend of US Bitcoin ETF withdrawals.
Coincidentally, Grayscale’s Bitcoin ETF (GBTC), launched in January 2024, experienced its first inflows since its inception. The fund received a hopeful $63 million on Friday, marking a significant turning point after 77 consecutive days of net outflows.
Positive sentiments were also evident in the broader ETF market, as spot Bitcoin ETFs saw a net inflow of $378 million on the same day. The Fidelity ETF (FBTC) stood out with a substantial single-day net inflow of $103 million, while BlackRock’s iShares Bitcoin ETF (IBIT) saw a smaller but still positive influx of $12.7 million.
The appeal of US spot Bitcoin ETFs extends beyond the domestic market, with Hong Kong-based Yong Rong Asset Management becoming the largest ETF holder after purchasing $38 million worth of IBIT. Hong Kong’s cryptocurrency-based ETFs have experienced remarkable growth, with three Bitcoin spot ETFs in the region holding approximately 4,225 BTC, valued at $250 million as of May 3. Additionally, three Ethereum spot ETFs held over 16,000 ETH, worth $48.52 million, highlighting the increasing interest of investors in the region’s cryptocurrency market.
Overall, the rise in Bitcoin’s price, coupled with the growing interest in US Bitcoin ETFs, indicates a shift in investor sentiment and a potential change in the cryptocurrency market landscape.