Bitcoin made a strong move at the start of December. The price climbed more than eight percent in one day and moved above ninety three thousand dollars. This rise came after new money flowed back into spot Bitcoin ETFs. The biggest part of this came from the IBIT fund which pulled in one hundred and twenty million dollars in a single day. Two other major funds also brought in smaller inflows. One fund had twenty two million and another had seven point four million. Only one fund saw large outflows which cut the total daily gain to about fifty eight and a half million dollars.
Even so the day marked the fifth day in a row of positive ETF inflows. This steady return of money helped keep Bitcoin above eighty thousand dollars during a period when the market looked shaky. Many traders are now wondering if this could be the start of a holiday style rally or if other global risks could slow things down.
Some analysts say the inflow jump happened because a major global asset manager opened access to Bitcoin ETFs for millions of its users on the second of December. This move unlocked a huge pool of new interest. Early trading volume in IBIT was very strong which showed that many conservative long term investors were ready to add some crypto exposure to their portfolios. One analyst said that these new buyers may have helped stop a larger price fall that was building in the final quarter of the year.
Other experts pointed out that the larger global picture is also helping risk assets. They said that tightening by the central bank in the United States is slowing down. They also said that the flow of cash out of markets may be easing. When this happens risk assets like crypto often see stronger demand. They also noted that this market looks better for breakout trades than for buying dips without confirmation.
Right now many traders are watching the ninety eight to one hundred thousand range. This area acted as strong support in the past. It also became the cost area for many bullish buyers earlier in the year. During the recent fall this zone was broken which means it may now act as a target or resistance. If the price returns to this area some traders may choose to sell to break even. If enough demand returns at that point the price could climb further.
Another research group said that the market may be setting up for a tactical recovery in mid December. They noted that earlier liquidity wipeouts were often followed by rebounds after one to three weeks. That pattern may repeat this time as well.
But there is still one big risk. The Japanese central bank is close to raising rates later this month. Many traders used the low rate environment in Japan to borrow money cheaply and invest in higher return markets. If that trade unwinds it can pressure global assets including Bitcoin. There is a strong chance the bank will raise rates in the meeting on the nineteenth of December.
In short ETF inflows have returned and helped the price recover. The broader market picture is improving too. But global risks remain and the path to one hundred thousand dollars depends on how these forces play out.
#ETFvsBTC #BTC #bitcoin #CryptoNewss #cryptooinsigts
