Bitwise Reports Bullish Sentiment and Record Inflows for Bitcoin
The latest Bitwise Europe Crypto Market Compass indicates strong support for Bitcoin, driven by a combination of improved risk appetite, liquidity, and macro momentum. Key points include:
- Bitcoin's price rebounded from $101,000 to approximately $108,000 amid cooling inflation and favorable geopolitical developments.
- Bitwise's Cryptoasset Sentiment Index shows the most optimistic reading since May, signaling bullish sentiment.
- Cumulative net inflows to global Bitcoin ETPs reached a record $14.3 billion year-to-date, with $2.2 billion added in the past week.
- Declining macro uncertainty and potential US trade agreements are encouraging investor confidence.
- Fed Chair Jerome Powell's comments on possible rate cuts align with positive market sentiment.
- Whale wallets withdrew 8,740 BTC from exchanges last week; exchange reserves fell to 2.898 million BTC, indicating reduced selling pressure.
- Despite futures open interest declining and bearish funding rates, options markets show traders easing their short positions.
- Bitwise predicts that sustained ETF inflows could lead to significant upward movement for Bitcoin as geopolitical stability improves.
As of now, Bitcoin (BTC) is trading at $106,840.
