Bitcoin Gains Amid Favorable CPI and ETF Inflows

By: Isha Das

Bitcoin (BTC) saw a significant boost driven by spot buying and notable inflows into Bitcoin ETFs in the US. The State of Wisconsin made headlines by purchasing $170 million worth of BTC ETF, and Vanguard's appointment of a Bitcoin-friendly CEO further bolstered market sentiment.

CoinShares reported impressive digital asset inflows of $932 million, marking a 616% week-on-week increase. This surge was attributed to the lower-than-expected CPI report. Despite the substantial inflows, trading volumes remained subdued compared to earlier periods.

The US continues to dominate with more than $1 billion in inflows from Bitcoin ETFs. Grayscale's Bitcoin ETF GBTC saw a rare inflow of $18 million. However, newly launched ETFs in Hong Kong failed to attract expected investments, with about $83 million withdrawn from crypto-related investments. Meanwhile, Ethereum-based products recorded outflows due to bearish sentiments driven by the nearing decision on the approval of a spot Ethereum ETF by the US SEC.

Other altcoins, including Solana, Chainlink, and Cardano, saw positive inflows, demonstrating a varying interest landscape among investors.