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Bitcoin price climbed above $114,000 on Thursday morning, marking a two-week high and the cryptocurrency’s strongest level since August 24. CoinGecko data tracked the move as traders reacted to fresh macro readings.
US spot Bitcoin ETFs drew $757.1 million in net inflows on Wednesday, the largest in eight weeks. Cumulative net subscriptions reached $1.39 billion in September, according to SoSoValue data. Flows concentrated in the largest funds. Observers view the rebound as a sign of renewed institutional demand.
The recent increase in Bitcoin ETF inflows could be due to positive shifts in the macroeconomic climate, especially the August inflation report and expectations regarding the Federal Reserve's upcoming interest rate decision. Analysts say these are some of the reasons for the growing interest in Bitcoin ETFs.
While ETF money moved toward Bitcoin, futures traders leaned into Ethereum. Aggregate 24-hour Ethereum futures volume reached $49.4 billion, topping Bitcoin’s $42.9 billion, per Coinanalyze data. The split points to different vehicles driving each asset: cash ETFs for BTC and derivatives for ETH.
Meanwhile, according to the reports, Ethereum-based funds experienced net outflows this month despite Bitcoin ETFs gaining subscriptions. The divergence highlights a rotational trade in which some investors prefer BTC exposure ahead of key macro events.
Rotation was evident in price action. The rise in Bitcoin since Tuesday, when it dropped below the $110,700 mark, was accompanied by an increase in ETF inflows. The traders also tracked the possibility of prolonged demand for funds to prolong the spot momentum.
This shift may suggest a capital rotation, as institutional investors might want to reposition their Bitcoin holdings before major macroeconomic events. With Bitcoin's decline in dominance, the share of total trading volume controlled by altcoins has now increased to 50%, up from 40% in recent weeks. This movement indicates a growing interest in altcoins, even though Bitcoin still leads ETF inflows.
The August Producer Price Index fell 0.1% month-on-month, below forecasts. The print eased rate-sensitivity in risk assets and supported the latest crypto bid. According to the US Bureau of Labor Statistics, final demand prices rose 2.6% year-over-year.
Markets now expect the Federal Reserve to cut rates next week. A Reuters poll points to a widely anticipated 25-basis-point move on September 17. CME FedWatch probabilities also show a strong tilt toward a quarter-point reduction over a larger cut.
Also Read: Metaplanet Raises $1.4B to Expand Bitcoin Holdings, Stock Surges 16%
Sustained ETF inflows often add steady spot demand that can tighten the price float. If flows remain elevated after the Fed decision, BTC could find a higher base for attempts at the all-time high. The durability of that bid depends on follow-through from large issuers and advisers.
Nonetheless, derivatives positioning and low options-implied volatility indicate controlled expectations towards the event. A more modest reduction or hawkish signaling might dampen risk appetite and cool flows. The traders will monitor whether ETF subscriptions continue following the policy announcement and whether Ethereum derivatives leadership shifts to widespread altcoin risk-on behavior.
