Bitcoin ETF Inflows Surge to January Highs as Investor Sentiment Rebounds

Bitcoin ETFs See Strongest Daily Inflows in Over Three Months

Investments in U.S. spot Bitcoin exchange-traded funds (ETFs) surged on April 22, reaching levels last seen in January. This marks a significant recovery in market sentiment, fueled by easing concerns over U.S.-China trade tensions.

According to data from Farside Investors, cumulative net inflows into Bitcoin ETFs totaled $912 million on the day — the highest since January 21. James Butterfill, Head of Research at CoinShares, described the movement as a “dramatic improvement in sentiment.”

Trade Tensions Ease, Boosting Market Confidence

Investor optimism improved after former U.S. President Donald Trump signaled a softer stance on trade, stating that tariffs on Chinese imports would be “substantially reduced.” The news helped lift Bitcoin’s price above $93,000 for the first time in nearly two months.

Market analysts believe that continued ETF inflows and increasing institutional involvement could accelerate Bitcoin’s typical four-year market cycle, potentially driving the cryptocurrency to new all-time highs before the end of 2025.

Weakening U.S. Dollar Strengthens Bitcoin’s Safe-Haven Role

The U.S. Dollar Index (DXY), which tracks the value of the dollar against a basket of global currencies, has dropped 9% year-to-date, reaching a low of 98.8 — a level not seen since April 2022. Analysts suggest that macroeconomic uncertainty and a softer dollar may be making Bitcoin more attractive as a hedge.

Ryan Lee, Chief Analyst at Bitget Research, said, “Macro factors like a weakening dollar and rising gold correlation enhance Bitcoin’s appeal as a store of value.”

Bitcoin Breaks Away from Tech Market Shadow

Analysts now observe that Bitcoin is becoming less correlated with tech stocks and more aligned with traditional safe-haven assets like gold. Nexo analyst Iliya Kalchev noted that “Bitcoin’s strength amid dollar weakness, record gold prices, and renewed institutional buying reflects a market recalibrating its definition of safety.”

Alex Svanevik, CEO of Nansen, echoed this sentiment, saying Bitcoin is transitioning from a tech-like asset to one that mirrors gold in times of financial stress.

Bitcoin Price Could Soon Break $100K, Says Arthur Hayes

BitMEX co-founder Arthur Hayes recently predicted that the current levels may represent the “last chance” to buy Bitcoin under $100,000. He pointed to upcoming U.S. Treasury buybacks as a potential catalyst for a major price surge.