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Spot Bitcoin exchange‑traded funds (ETFs) recorded a strong resurgence in demand on Wednesday, logging a combined $457 million in net inflows, their largest intake since November 11. Data from Farside Investors show that Fidelity’s Wise Origin Bitcoin Fund (FBTC) attracted $391.5 million, accounting for most of the day’s flows, while BlackRock’s iShares Bitcoin Trust (IBIT) drew $111.2 million.
Minor outflows at Bitwise’s BITB, ARK 21Shares’ ARKB, and Hashdex’s DEFI reduced the total inflows. The surge lifted cumulative inflows for US spot Bitcoin funds beyond $57 billion and pushed total net assets above $112 billion, close to 6.5% of Bitcoin’s market capitalization.
The flows mark a reversal from the choppy trading seen in November and early December, when ETFs alternated between modest inflows and sharp redemptions.
Market participants view the inflows as early positioning rather than late‑cycle enthusiasm. Vincent Liu, chief investment officer at Kronos Research, said softer rate expectations have made Bitcoin “a clean liquidity trade again” while cautioning that momentum may remain uneven.
Bitcoin traded around $87,000 during the session and later bounced above $88,000 after the US inflation report surprised to the downside. The rally remained capped by a dense supply cluster between $93,000 and $120,000, leaving approximately 6.7 million BTC held at a loss, the highest level of the current cycle.
Analysts at Glassnode said sellers will need to be absorbed above $95,000 or fresh liquidity will need to enter the market before a sustainable break higher can occur. Support sits near $81,000, where the True Market Mean is located.
Bitcoin’s share of the total cryptocurrency market capitalization climbed to 60%, its highest level since mid-November. Analysts attribute the gain to macro uncertainty and the adoption of spot ETFs, which have consolidated capital in Bitcoin. While this dominance spike often precedes a rotation into smaller digital assets, any such move depends on improved risk sentiment and stronger liquidity.
The surge in ETF inflows coincided with several macroeconomic events. The Bank of England cut its Bank Rate by 0.25 percentage points to 3.75% on December 18, its lowest level in nearly three years, noting that inflation had fallen to 3.2%. Officials signalled that further cuts will be gradual and depend on wage growth and service inflation.
On the same day, the European Central Bank left its main refinancing rate unchanged at 2.15%, with the deposit facility at 2% and the marginal lending facility at 2.40%. President Christine Lagarde cautioned that future moves will depend on incoming data but emphasised the need to ensure inflation stays close to the 2% target.
In the United States, consumer price data provided a fresh boost to risk assets. The Consumer Price Index rose 2.7% year‑over‑year in November, below expectations of 3.1%, while core CPI increased 2.6%. Monthly figures were not published because statisticians were still dealing with the effects of an October government shutdown. Bitcoin reacted positively, climbing above $88,000 as traders increased bets on future Federal Reserve rate cuts.
However, markets continued to price a high probability that the central bank will keep rates steady at its January meeting. US President Donald Trump added to the rate‑cut discussion by announcing that he would appoint a Federal Reserve chair who supports significantly lower interest rates, with a successor to Jerome Powell expected early next year.
Also Read: Why Bitcoin Fell to $85K: 5 Key Reasons and What’s Next
