Bitcoin rebound draws spot demand as ETFs take in $1 billion

  • Cloud said spot buying is supporting Bitcoin’s recent rebound.
  • $1 billion entered U.S. spot Bitcoin ETFs on Sept. 21, while $650 million in shorts were liquidated.
  • Falling oil prices eased inflation concerns as sentiment entered an extreme greed zone.

Bitcoin’s recent rebound has been supported by spot buying, but its continuation will depend on U.S. spot Bitcoin ETF flows and market leverage, the use of borrowed funds to amplify trades. HTX chief analyst Cloud said the ETFs recorded about $1 billion in net inflows on Sept. 21, citing local time, while roughly $650 million in short positions were liquidated over 24 hours. Falling oil prices also reduced inflation concerns and supported gains. Cloud said last week’s rebound appeared to be driven mainly by passive buying linked to short liquidations, whereas this week has brought continued spot demand. Sustained ETF inflows and restraint in leverage expansion will be important for extending the uptrend, although near-term volatility remains a concern as sentiment has reached an extreme greed zone.

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