On Wednesday, U.S. spot bitcoin exchange-traded funds (ETFs) recorded their largest single-day inflows since November 11, coinciding with a turbulent crypto market where bitcoin surged to nearly $90,000 before retreating to below $86,000.
In total, these funds saw net inflows of $457.3 million, with the majority — $391.5 million — directed into the Fidelity Wise Origin Bitcoin Fund (FBTC), marking one of the top five inflow days for FBTC. Additionally, BlackRock’s iShares Bitcoin Trust (IBIT) experienced strong demand with inflows of $111.2 million.
Bitcoin dominance, indicating BTC’s share of the overall cryptocurrency market capitalization, has risen to 60%. This represents the highest level since November 14, when bitcoin was valued near $100,000. The largest cryptocurrency is currently trading around $87,000.
Several macroeconomic events scheduled for today may further heighten volatility in bitcoin price action. Bitcoin implied volatility, reflecting the market’s anticipated future price fluctuations based on options pricing, is presently just below 50 according to the Volmex Bitcoin Implied Volatility Index (BVIV). This represents a historically low level, indicating muted risk pricing despite recent market fluctuations.
The Bank of England (BOE) is anticipated to lower interest rates by 25 basis points at 12:00 UTC, reducing the benchmark rate to 3.75%. Meanwhile, the European Central Bank (ECB) is predicted to maintain rates at 2.15%. Later in the day, both the U.S. and Japan are scheduled to release inflation data, events that could trigger increased volatility across global markets, including cryptocurrencies.
