5-week Bitcoin ETF drain ends, analysts anticipate rebound

Spot Bitcoin exchange-traded funds (ETFs) have resumed weekly inflows as Bitcoin has regained its footing above the critical $85,000 support level, which analysts believe is essential for the next upswing.

According to data provided by SoSoValue, the 12 spot Bitcoin ETFs witnessed a significant turnaround, halting their weekly sequence of outflows with substantial net inflows totaling $744.35 million during the week of Mar. 17-21.

Notably, Bitcoin ETFs recorded positive net flows throughout the entire week, commencing with $274.59 million on Monday, followed by $209.12 million, $11.8 million, $165.75 million, and concluding with $83.09 million on Friday.

The majority of inflows during the week were directed towards BlackRock's IBIT, which attracted $537.5 million, followed by Fidelity's FBTC with $136.5 million. Moreover, positive momentum was observed from ARK 21Shares' ARKB, Grayscale's mini Bitcoin Trust, and VanEck's HODL with $79.5 million, $23.9 million, and $11.9 million respectively.

However, the overall situation was not entirely positive, as Bitwise's BITB, Invesco's BTCO, Franklin Templeton's EZBC, and Grayscale's GBTC still experienced combined outflows of $45 million.

Despite this, the overall reversal is a positive sign following nearly $5.4 billion in outflows over the previous five weeks. This pullback was primarily driven by wider macroeconomic uncertainty, including Trump's earlier tariff threats, which unnerved markets and diminished risk appetite.

However, sentiment may now be shifting in favor of Bitcoin as Trump moderates his stance on the upcoming April 2 reciprocal tariffs, alleviating concerns of a full-blown trade war. Simultaneously, the Federal Reserve has indicated it may abstain from raising interest rates.

At the time of publication, Bitcoin (BTC) had increased by 4.4% over the past week, achieving a market cap of $1.72 trillion as it traded at $86,918 per coin.

Analysts emphasize that for Bitcoin to maintain this momentum, it is vital to maintain the $85,000 level.

Ryan Lee, chief analyst at Bitget Research, stressed that a weekly close above $85K is necessary to prevent a potential pullback to $76,000 and to preserve the bullish market structure.

Meanwhile, Markus Thielen of 10x Research noted in a March 23 report that Bitcoin's reversal indicators have shifted to bullish, with the 21-day moving average now at $85,200. He highlighted that similar setups in September 2023 and August 2024 preceded robust rallies.

"The technical backdrop has now reset to a point where a renewed uptrend could plausibly unfold," Thielen said.