- iShares Bitcoin Trust (IBIT) reported net inflows of $750.9 million.
- Grayscale Bitcoin Mini Trust had net inflows of $110.8 million.
- However, ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), and Fidelity Wise Origin Bitcoin Fund (FBTC) had combined net outflows totaling $180.5 million.
The US BTC-spot ETF market saw $559.5 million of total net inflows in the week, down from $1,757.7 million the previous week. Concerns about a potentially more hawkish Fed rate path tempered demand. Despite the late January slowdown, the US BTC-spot ETF market registered total net inflows of $5,158.7 million in January, the fourth largest since launch.
Blackrock’s (BLK) IBIT remains the dominant force in the US BTC-spot ETF market, now the second largest BTC holder (excluding exchanges). According to HODL15Capital, IBIT holds 582,821 BTC, topping the ETF table. Fidelity’s FBTC is a distant second, holding 213,634 BTC.
ETF Store President Nate Geraci remarked on the US BTC-spot ETF market’s performance, saying:
“I can still remember a year ago, when I was told there was no demand for spot btc ETFs… After they had meaningful inflows, then it was all ‘degen retail’. One year later, they post a $5+bil inflow month. Love to see it.”
Strategic Bitcoin Reserve Gains Political Support
Expectations for a US Strategic Bitcoin Reserve (SBR) supported BTC’s price. On February 1, Senate Banking Subcommittee on Digital Assets Chair Cynthia Lummis commented:
“The Strategic Bitcoin Reserve is the only tool I see that can help people in my generation right the wrongs that we did to younger generations and generations to follow with respect to our debt and fiscal mismanagement.”
Senator Lummis also shared an interview, discussing the potential impacts of an SBR and the Bitcoin Act. The Bitcoin Act proposes the US government acquire one million BTC over five years, with a mandatory 20-year holding period. If implemented, a US SBR could tighten BTC supply, fueling a rise to unprecedented highs.
US Congress, the Fed, the US Treasury Secretary, and the President must approve national strategic reserve assets.
BTC Price Outlook: Record Highs in Sight?
BTC’s price trends depend on Trump’s policies, the Fed rate path, SBR developments, and US BTC-spot ETF flows.
- US BTC-spot ETF inflows and progress toward a US SBR could counter Fed policy jitters, driving BTC beyond the record high of $109,312.
- A lack of progress toward an SBR, BTC-spot ETF outflows, and a hawkish Fed could pull BTC toward $95k.
Dive deeper into the influence of macroeconomic data, US crypto policies, and BTC-spot ETF market flows on price action. Follow our analysis and forecasts here to manage crypto-related risks.
Technical Analysis
Bitcoin Analysis
Despite the tariff-driven pullback, BTC remains above the 50-day and 200-day Exponential Moving Averages (EMA), sending bullish price signals.
A break above $105k could enable the bulls to target the all-time high of $109,312. A breakout from $109,312 may signal a move toward 120k next.
Conversely, a BTC break below $100k could signal a fall toward the 50-day EMA. A fall below the 50-day EMA may bring the $90,742 support level into sight.
With a 49.56 14-day Relative Strength Index (RSI) reading, BTC could drop to the $90,742 support level before entering oversold territory (RSI below 30).
