Institutional money is flooding back into crypto after three months of hesitation. U.S. spot Bitcoin (BTC) ETFs pulled in $843.62 million on Wednesday, marking the highest single-day total since October 7 and pushing the world's largest cryptocurrency to test the psychologically important $100,000 level.
From Bleeding to Booming in Two Weeks
Wednesday's massive inflow caps a three-day run that brought $1.71 billion into Bitcoin ETFs. To put that in perspective, these same funds hemorrhaged $1.38 billion during just four trading days in early January as investors pulled back after year-end positioning.
The reversal happened remarkably fast. Tuesday saw $753.73 million in inflows, which was the highest in three months at the time. Then Wednesday topped that with $843.62 million, representing the biggest single day since early October.
BlackRock's IBIT (IBIT) dominated the action, attracting $648 million on Wednesday alone. Fidelity's FBTC (FBTC) added $125.4 million, while Ark & 21Shares' ARKB (ARKB) pulled in $27 million.
Overall, eight of the 12 U.S. spot Bitcoin ETFs reported net inflows for the session, signaling that institutional demand is broad-based rather than concentrated in just a few products.
January's Recovery Pattern Takes Shape
Through 14 trading days in January, Bitcoin ETFs have now posted $1.81 billion in net inflows. The month has seen positive flows on six days and outflows on three, with Wednesday's $843.62 million representing the strongest inflow day and January 7's $486.08 million outflow marking the worst.
Nick Rick, director of LVRG Research, characterized the ETF inflows as representing a resurgence of institutional demand. According to Rick, investors are aggressively reallocating capital after year-end caution and de-risking that dominated late last year.
The numbers are getting substantial. Total Bitcoin ETF assets now stand at $128.04 billion, representing 4.54% of Bitcoin's entire market capitalization. Cumulative net inflows since these products launched have hit $58.12 billion, with daily trading volume reaching $6.26 billion.
Other Crypto ETFs Are Having a Moment Too
The enthusiasm isn't confined to Bitcoin. Spot Ethereum (ETH) ETFs posted $175 million in positive flows on Wednesday, marking their third consecutive day of net inflows.
Even the newer products are attracting money. Spot Solana (SOL) ETFs reported $23.5 million in inflows, while XRP (XRP) ETFs brought in $10.6 million. The broad-based buying across crypto ETFs suggests renewed confidence in the entire digital asset ecosystem, not just the biggest name.
Vincent Liu, CIO of Kronos Research, believes sustained net inflows into crypto ETFs will create a "structural tailwind" for crypto prices. He pointed to improving regulatory clarity, particularly the Senate Banking Committee's draft bill that would grant major altcoins Bitcoin-like commodity status.
Bitcoin Consolidates Below the Big Round Number
Bitcoin is trading essentially flat today, down 0.40%, as it consolidates just below the critical $100,000 psychological resistance level. Price is holding above both the 20-day moving average at $91,860 and the 50-day average at $92,068, which maintains the short-term bullish structure.
However, the 200-day moving average at $99,560 has proven formidable, rejecting multiple breakout attempts. That's the level bulls need to conquer.
A sustained move above the $99,500-$100,000 zone would confirm an ascending triangle breakout pattern, potentially targeting $104,000 and eventually $108,000. The consolidation pattern suggests a significant move is coming soon, though direction will be determined by whether bulls can finally push through the $100,000 barrier.
On the downside, support sits at $95,000, then $92,000 where the moving averages converge, followed by $89,000. Losing the $95,000 level would signal that the breakout attempt has failed and could trigger profit-taking from recent buyers.