US spot Bitcoin ETFs attracted $730.9 million in net inflows on Thursday, marking their strongest single day in nearly eight months as Bitcoin reclaimed the $80,000 level. According to reporting by CoinTelegraph, the surge represents the largest daily inflow since January 14, when the funds drew $843.6 million.
BlackRock’s iShares Bitcoin Trust (IBIT) dominated the institutional bid, capturing $454 million of Thursday’s total—roughly 62% of all flows. The world’s largest asset manager has emerged as the dominant player in the US Bitcoin ETF market, though IBIT’s single-day inflow remains below its August 20 peak of $503 million.
ARK Invest and 21Shares’ ARKB followed with $137.7 million, while Fidelity’s Wise Origin Bitcoin Fund (FBTC) added $74.4 million. Only two funds recorded outflows: VanEck’s HODL shed $19.6 million and WisdomTree’s BTCW dropped $5.2 million.
The Rally’s Hidden Weakness
Yet the inflow surge masks a concerning reality about Bitcoin’s recent price action. Analysis from CryptoQuant suggests the rally driving BTC toward $80,000 was fuelled primarily by short-covering—traders closing bearish bets—rather than fresh capital entering the market.
The distinction matters. Short squeezes produce sharp but unsustainable price moves. They attract margin calls and forced buying but rarely attract committed new money. CryptoQuant noted that Bitcoin holders realized 23,000 BTC in net profits on August 21 alone, the highest daily figure of 2024, with roughly 110,000 BTC liquidated since August 19. This profit-taking suggests traders were exiting positions into strength rather than accumulating at higher prices.
“A decisive close above $83K would confirm the new bull market,” CryptoQuant said in a Thursday report, positioning that level as the critical inflection point. The firm cited Bitcoin’s 365-day moving average—currently around $82,300—as a historically significant barrier between bull and bear regimes. Bitcoin has tested resistance repeatedly near $81,400 this week.
Where the Market Goes From Here
The path forward hinges on whether the Bitcoin ETF inflows continue once price stabilizes. If institutional buyers step in with conviction above $83,000, the rally gains structural support. A rejection would likely trigger a pullback toward the 200-day moving average near $69,000, erasing much of August’s gains.
For now, the ETF data tells a mixed story: capital is flowing into US-listed funds, but the underlying demand remains questioned by technical analysts monitoring on-chain profit-taking. Bitcoin’s ability to hold $80,000 and attract sustained inflows will determine whether this becomes a genuine bull market or another frustrating false breakout.