Bitcoin futures and options indicate growing strength at BTC’s $70,000
The newly launched spot Bitcoin (BTC) exchange-traded funds (ETFs) experienced their first week of net outflows from March 18 to March 22. A total of $888 million was withdrawn from the spot ETFs, marking a significant shift from the previous week's $2.57 billion inflow. This has led to speculation about the sustainability of Bitcoin's rally to $70,000 on March 25.
Some market participants had argued that institutional inflows were a key driver behind Bitcoin's all-time high of $73,755 on March 14, casting doubt on the 9% gains seen between March 23 and March 25. Further raising concerns is the fact that this rally occurred while the S&P 500 index was unable to maintain its all-time high of 5,260 set on March 21.
Analyst venturefoundΞr, on March 20, suggested that Bitcoin was facing a reality check after FOMO from ETF investors drove it to a new high before the halving, effectively "trapping" those who bought at the peak. While a 15% gain from March 20 to March 25 shouldn't dismiss bearish concerns outright, Bitcoin's market behavior suggests that its bullish momentum isn't solely reliant on spot ETF inflows.
