Exchange-traded funds tied to Bitcoin and Ether pulled in more than US$3.2 billion last week. The iShares Bitcoin Trust ETF (IBIT) led the way, attracting close to US$1.5 billion on its own.
Bitcoin is making headlines again, nearing the $100,000 milestone after weeks of market turbulence. The world’s most popular cryptocurrency surged to $97,483 on Thursday, its highest value since February 21. This comes as investors gradually return to riskier assets, breathing new life into the crypto market.
Earlier this year, Bitcoin soared to a record-breaking $109,000 on January 20 — the day Donald Trump began his second term as U.S. President. But the market quickly turned. Concerns over Trump’s proposed tariffs on key trading partners triggered a major sell-off in both stocks and digital currencies. Bitcoin alone dropped nearly 30% from its peak.
The latest climb reflects a growing sense of stability. Unlike past rallies driven by speculation and heavy use of derivatives, this rebound seems to stem from actual buying in the spot market, where assets are bought and sold for immediate delivery. This trend suggests traders are reacting more to market momentum than broader economic forces like inflation or tariffs.
Supporting this momentum, exchange-traded funds (ETFs) tied to cryptocurrencies have seen strong inflows. In just one week, over $3.2 billion flowed into Bitcoin and Ether-focused ETFs. Notably, the iShares Bitcoin Trust ETF (ticker: IBIT) received nearly $1.5 billion, making it the largest inflow of the year so far, according to Bloomberg.
Smaller cryptocurrencies joined the upward trend. Dogecoin rose by 4.8% and Ether climbed 3.3%, reflecting a broader recovery across digital assets. However, the current rally hasn't been fueled by aggressive futures trading. Liquidations — which occur when investors are forced to close losing positions — have stayed relatively calm, a sign of more controlled market activity.
Meanwhile, there’s growing interest in Bitcoin options with a $100,000 strike price. This means traders are betting on the possibility that Bitcoin will hit or surpass that level soon. CoinGlass and Deribit, a leading crypto options exchange, report that these call options have seen the most open interest, indicating strong market focus on that price point.
Chris Newhouse, director of research at DeFi firm Ergonia, noted a shift in market behaviour. “Momentum-based trades, supported by spot buying, are now leading the way,” he said. He also pointed out that Bitcoin’s connection with traditional markets — like gold and stocks — is becoming more complex, reflecting a blend of short-term excitement and long-term macro trends.
Just a month ago, the outlook was grim. Trump’s new tariffs rattled markets, causing investors to pull out of cryptocurrencies in favour of safer assets. That led to a wave of crypto futures liquidations and a rapid price drop. But now, the tides seem to be turning again — and fast.
