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Two Strong Indicators Suggest US Investors Are Flocking Back to Bitcoin
A significant shift in the market has been observed, as recent data reveals a substantial increase in US investors’ interest in bitcoin. On January 3rd, a remarkable surge was seen in the net inflows of Bitcoin ETFs (Exchange-Traded Funds), indicating that American investors have begun to re-enter the crypto market.
As per FarSide data, this significant upswing marks the best day for net inflows since November 21st, with $908.1 million being poured into these funds. This drastic change in investor sentiment is attributed to Fidelity’s FBTC ETF, which garnered a substantial amount of $357 million, followed closely by Ark Invest’s ARKB, attracting $222.6 million.
The rapid turnaround in this data suggests that US investors are now increasingly attracted to bitcoin, and this trend has been further corroborated by the Coinbase Premium Index. This metric tracks the price difference between Coinbase and Binance, providing valuable insights into the accumulation of these assets among US-based investors.
In recent times, the index had plummeted to a yearly low due to the increased ETF outflows post-FOMC meeting. However, it has since bounced back to neutral territory, indicating an uptick in sentiment.
The sudden shift in investor behavior could be attributed to the shifting landscape of interest rates and inflation expectations after the latest FOMC (Federal Open Market Committee) meeting. With the possibility of fewer rate cuts in 2025 due to rising inflation concerns, investors are looking for alternative assets that can provide better returns or hedge against potential inflationary pressures.
As we continue to monitor this trend, it is clear that US investors have regained their interest in bitcoin and cryptocurrency, a significant departure from their previous sentiment following the FOMC meeting.
Source: cryptopotato.com
