BTC ETFs are seeing strong momentum, with reports of positive flows of up to $105 million on Monday, bringing cumulative inflows over the past three weeks to nearly $2.4 billion.
Experts believe that the inflow of funds is due to increased global liquidity, which can boost BTC prices by improving market sentiment.
The BTC ETF market rebound momentum continued to strengthen, with $105 million in inflows on June 3.
On-chain data platform SpotOnChain shows that this marks the 15th consecutive trading day of positive flows for BTC ETFs and brings the cumulative inflows to $2.4 billion.
Fidelity’s FBTC recorded inflows of up to $77 million (over 1,110 BTC) on Monday.
Meanwhile, Grayscale's GBTC and BlackRock's IBIT recorded zero net flows on the same day. Bitwise ETF BITB recorded $14 million in inflows, while Ark21Shares' ARKB ETF recorded a whopping $10 million in positive inflows.
The surge in capital inflows coincides with an increase in global liquidity.
BTC analyst Willy Woo emphasized that the relationship between BTC price and M2 expansion reflects broader market sentiment and economic conditions.
A high M2 expansion indicates loose monetary policy and an increase in money supply. In response, the price of BTC tends to rise as investors seek other assets for potential returns.
It is worth noting that the price of BTC usually responds positively to increases in money supply and inflation concerns. This is because investors view BTC as a store of value against traditional fiat currencies such as the U.S. dollar, which may depreciate due to inflation.
Bitfinex analysts noted in a market update on Monday that BTC ETFs have seen an average of $136 million in daily inflows over the past two weeks.
“This is 4 times the $32 million of daily selling pressure from miners, and BTC is in an accumulation phase,” they said.
Analysts also stressed that the correction phase may be nearing its end. They attributed the recent drop in gold prices from $73,777 to selling activities by long-term holders.
The report shows that long-term holders have begun to accumulate BTC again for the first time since December 2023.
Since the BTC halving on April 20, investor confidence has risen, reinforcing the bullish narrative. This can be seen in the surge in BTC’s realized capitalization, which is approaching $600 billion.
The BTC Realized Cap indicator shows the true value of BTC based on the price it last moved. It provides a unique perspective on market dynamics, investor behavior, and historical trends in the BTC ecosystem.
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