Bitfinex Alpha: Bitcoin Surges Over 15% on ETF Inflows

ChainCatcher reports that Bitfinex Alpha's latest analysis attributes Bitcoin's strong rebound, from its recent low of $52,756, to a significant surge in Bitcoin ETF inflows.

Over the past week, BTC ETFs recorded net inflows of $4.039 billion, reversing a long period of outflows and indicating renewed investor confidence in the asset. This rally has been primarily driven by positive buying in the spot market. Conversely, futures and perpetual contract markets have exhibited less volatility, suggesting that the current price increase is based on real capital inflows rather than speculative leverage. This provides a more sustainable foundation for the rebound.

Analysts believe that market volatility is likely to be heightened this week, driven by investor anticipation of the Federal Reserve's interest rate decision. Whether the rate cut is 25 or 50 basis points, it could trigger a swing between bullish optimism and cautious risk aversion. Meanwhile, the correlation between Bitcoin and stocks is strengthening, suggesting that traditional financial market trends may increasingly influence Bitcoin's price.