Simply put
- On Wednesday, U.S. Spot Bitcoin ETF inflows hit $506 million, marking the highest level since February 2nd.
- The Coinbase Premium Index has turned positive for the first time since mid-January.
- However, one analyst warned that the reduced selling pressure doesn’t necessarily indicate a trend reversal.
On-chain data for Bitcoin has shown a decrease in selling pressure, which has contributed to gains continuing from Thursday as U.S. spot ETFs experienced their largest inflows in nearly three weeks.
The major cryptocurrency increased by 4.4% in the last day, reaching approximately $68,300, according to CoinGecko. This uptrend followed Wednesday’s rise in tech stocks, particularly spurred by Nvidia’s earnings.
NVIDIA’s impressive earnings report also helped lift the broader crypto market by 4.4% to a total of $2.43 trillion. The company’s quarterly revenue of $68.1 billion represented a 73% year-over-year increase, significantly surpassing Wall Street’s expectations.
For the U.S. Spot Bitcoin ETF, the recorded inflows of $506 million on Wednesday were the highest since February 2nd, when inflows reached $561 million. This spike may indicate a resurgence in institutional demand after a quieter period.
“Bitcoin spot demand is picking up for the first time since late November,” noted Julio Moreno, CryptoQuant’s research head.
Further on-chain data indicated less selling pressure on U.S. exchanges, with the Coinbase Premium Index rising from significantly negative levels in mid-February to 0.05 this week.
“There’s less selling pressure on Coinbase now,” stated CryptoQuant founder Ki Yong-joo, highlighting a positive shift in indicators.
Lacie Zhang, a market analyst from Bitget Wallet, expressed that these changing dynamics could represent a strategic entry point for investors. She mentioned, “This easing, marked by a 25% decrease in on-chain outflows and signs of increased demand since late November, might be setting the stage for a market bottom.” She went on to suggest that this is a buying opportunity that enhances the risk-reward ratio for long-term investment.
Not all analysts are as optimistic, though.
Ilya Otichenko, chief analyst at CEX.IO, took a more measured approach, suggesting that the drop in selling pressure is linked to a slowdown in speculative activity rather than a fundamental shift in demand. He pointed out that since early February, futures trading volume has decreased by about 44%, with spot trading falling around 50% from recent highs. “With less leverage and slower trading, there tends to be less forced selling,” he explained.
Despite these positive signals, Otichenko cautioned that a trend reversal remains unverified, as the market structure is still delicate and genuine demand hasn’t fully materialized.
He also remarked that current trends appear “constructive,” but they aren’t necessarily robust enough alone to validate a market bottom or initiate an upward trend, especially without improvements in the broader macroeconomic situation.
Meanwhile, users on prediction markets estimate a 46% chance that Bitcoin could reach $84,000 in its next move, an increase from 31% just a day prior.
