Bitcoin price remains steady above $102K with resurgence in ETF inflows

Bitcoin’s price remained stable above $102,000 on Thursday, holding onto recent gains despite slight declines in the wider cryptocurrency market. By 6:00 a.m. ET, BTC was being traded at $102,422, showing a 1.3% decrease for the day but still close to a three-week peak.

Investor confidence received a boost as around $320 million flowed into U.S.-based spot Bitcoin exchange-traded funds (ETFs) on Wednesday. The primary leader in these inflows was BlackRock’s iShares Bitcoin Trust (IBIT), with $232.9 million streaming in singularly. This positive turn came after a previous day’s net outflow of $96 million, which momentarily brought Bitcoin’s price down to $101,429. Despite recent volatility, Bitcoin futures’ open interest has maintained high levels above $30 billion, with over 98% of Bitcoin wallet addresses demonstrating profits.

Technical indicators suggest that traders are cautiously anticipating further upward movement for Bitcoin. The “Exchange Stablecoins Ratio” for Bitcoin recently rose above 5.0, reaching 5.3. This metric, comparing Bitcoin reserves to stablecoin reserves on exchanges, hint at growing selling pressure relative to buying liquidity. History reveals that spikes in this ratio, such as the peak near 6.1 in January, have historically preceded significant corrections.

As Bitcoin stands firm, many altcoins experienced declines midweek:
– Ethereum (ETH) decreased by 3.8% to $2,574
– XRP fell by 3.6% to $0.498
– Solana (SOL) declined by 5.6%
– Cardano (ADA) slipped by over 5%
– Polygon (MATIC) saw a drop of 7.85%
– Dogecoin (DOGE) and $TRUMP each fell by more than 5%

These movements reflect profit-taking habits and cautious behavior among traders within the crypto market in anticipation of key macroeconomic reports.

Investors are closely monitoring the upcoming U.S. Producer Price Index (PPI) report expected on Thursday. A reading lower than anticipated might reinforce expectations of a Federal Reserve rate decrease later in 2025. Recent optimism over U.S.-China tariff adjustments and a more tempered Consumer Price Index (CPI) statement earlier in the week have helped soothe inflation concerns. These developments have benefited risk assets like Bitcoin, although analysts caution that the Federal Reserve may prefer to wait for clearer signs of economic weakness before making any decisions.

Bitcoin appears to be maintaining a bullish trajectory, supported by strong ETF interest and the easing of global trade tensions. Nevertheless, the increase in exchange reserves and the volatility in altcoins indicate a fragile market state. Currently, $100,000 acts as a crucial psychological support level. If Bitcoin breaks above $105,000, it could potentially reignite bullish momentum. However, traders remain vigilant for indications from both inflation figures and institutional flows to guide their next moves.