Spot Bitcoin exchange-traded funds (ETFs) in the United States recorded their largest one-day inflows since November 11 on Wednesday, coinciding with a volatile crypto market in which Bitcoin rebounded to near $90,000 before reversing and falling below $86,000.
In total, the funds saw net inflows of $457.3 million, most of which – $391.5 million – went to the Fidelity Wise Origin Bitcoin Fund (FBTC), according to Farside data. This is one of the first five days of inflow for FBTC. BlackRock’s iShares Bitcoin Trust (IBIT) also saw strong demand, seeing inflows of $111.2 million.
Bitcoin dominance, which measures BTC’s share of the total cryptocurrency market capitalization, has climbed to 60%. This is the highest level since November 14, when bitcoin was trading near $100,000. The largest cryptocurrency is currently trading around $87,000.
Several macroeconomic events expected today could further amplify Bitcoin price volatility. Bitcoin’s implied volatility, which reflects market expectations for future price movements based on options prices, is currently just below 50 according to the Volmex Bitcoin Implied Volatility Index (BVIV). This level is historically low and suggests moderate risk pricing despite recent market movements.
The Bank of England (BOE) is expected to cut interest rates by 25 basis points at 12:00 UTC, lowering the benchmark rate to 3.75%. The European Central Bank (ECB) is expected to maintain its key rates at 2.15%. Later today, the United States and Japan are expected to release inflation data, developments that could increase volatility in global markets, including cryptocurrencies.
