U.S. spot bitcoin exchange-traded funds (ETFs) posted their biggest one-day inflows since Nov. 11 on Wednesday, coinciding with a volatile crypto market where bitcoin rose to nearly $90,000 before reversing and falling below $86,000.
In total, the funds recorded net inflows of $457.3 million, most of which — $391.5 million — went to the Fidelity Wise Origin Bitcoin Fund (FBTC), according to Farside data. This ranks as a top five inflow day for FBTC. BlackRock’s iShares Bitcoin Trust (IBIT) also saw strong demand, recording inflows of $111.2 million.
Bitcoin dominance, which measures BTC’s share of the total cryptocurrency market cap, has risen to 60%. This is the highest level since November 14, when bitcoin traded near $100,000. The largest cryptocurrency is currently trading around $87,000.
Several macroeconomic events scheduled for today may further add to the volatility of bitcoin price action. Bitcoin implied volatility, which reflects the market’s expectation of future price swings based on option prices, is currently just below 50 according to the Volmex Bitcoin Implied Volatility Index (BVIV). This level is historically low and suggests subdued risk pricing despite recent market movements.
The Bank of England (BOE) is expected to cut interest rates by 25 basis points at 12:00 UTC, lowering the benchmark rate to 3.75%. The European Central Bank (ECB) is expected to keep interest rates stable at 2.15 per cent. Later in the day, both the US and Japan will release inflation data, events that could increase volatility across global markets, including cryptocurrencies.
