Bitcoin Rises to $78,659 as ETF Inflows Offset Recent Sell-Off

U.S. spot Bitcoin ETFs saw their largest single-day inflow since January, signaling renewed investor confidence despite prices remaining below October highs.

BTC

Summary

On February 3, Bitcoin rose 3.8% to $78,659 as U.S. spot Bitcoin ETFs recorded a $561.8 million net inflow, the highest since January 14, ending a nearly ten-day streak of outflows. BlackRock’s iShares Bitcoin Trust (IBIT) added $142 million and Fidelity’s FBTC $153.3 million, highlighting sustained demand despite recent volatility. Spot Bitcoin remains 40% below its October peak, but U.S. ETFs collectively hold around 1.3 million BTC, only 5% below their asset peak. The average ETF cost basis is $84,099, above the current spot price, testing investor conviction.

Terms & Concepts
  • Forced liquidation: The automatic closing of a trader’s positions when margin requirements are not met, often resulting from rapid price declines.
  • Spot Bitcoin ETF: An exchange-traded fund that directly holds Bitcoin, allowing investors to gain price exposure without owning the cryptocurrency themselves.