Bitcoin Leads $862M Crypto Inflows Recovery as Halving Nears

• Crypto market inflows have resumed with a significant rebound following major outflows.
• Bitcoin has led the charge, attracting the majority of the inflows.
• The upcoming Bitcoin halving will take place this month.

Over the past week, the crypto market has recorded a wave of contrasts, marked by significant price volatility across various assets , including Bitcoin (BTC) . The resulting mixed market sentiment among investors has triggered concerns about the market’s ability to sustain an upward momentum, translating into a surge in outflows and liquidations . 

Despite the disruption, a recent influx of funds has indicated a resurgence in positive market sentiment.

Bitcoin Inflows Surge 

According to the CoinShares crypto funds report on April 2, the crypto market recorded inflows totaling US$862 million in the past week, nearly fully recovering from the previously recorded $931m in outflows.

Led by Bitcoin, which set the largest record of $865 million, the surge coincides with the rebound in Bitcoin price over the past week, which saw the largest crypto asset reclaim its $70,000 mark following an intense retest. 

The renewed attention in Bitcoin ETFs following a week-long dip has also contributed to the increase, marked by surging inflows and growing BTC assets under management (AUM) among the majority of the issuers.

While Bitcoin’s upward trajectory heights a rebounding market sentiment, underperformers, including Ethereum (ETH) -linked funds and select altcoins, have defied the trend, recording nearly $23 million in outflows despite the bullish sentiment. Solana (SOL) , Polkadot (DOT) , Cardano (ADA) , Ripple (XRP) , and Litecoin all recorded inflows of $6.1 million, $2.4 million, $1.1 million, $300,000, and $200,000, respectively.

The growing participation in BTC and rebounding market interest align with the intensifying anticipation of the upcoming Bitcoin halving event. 

Bitcoin Halving Countdown

As the Bitcoin halving countdown continues, expectations for its historically associated ripple effects are intensifying among investors. Despite the ongoing fluctuations in the asset’s price, optimism is growing that the halving will replicate its past patterns of success and catalyze a long-coveted bull run for the crypto industry.

The looming 6.25 BTC mining block reward slash to 3.125 BTC is expected to translate into a supply strain and coincide with an intensifying demand, ushering in new price heights for the crypto king.

Market analyst Rekt Capital emphasized that while the recent dip in Bitcoin’s price indicates a failure of its “post-breakout retest,” confidence remains for BTC to rebound and surpass the $69,000 price mark by the weekend.

With only 2,603 blocks to hit the 840,000 blocks required for the event, the fourth Bitcoin halving is expected to occur on April 20, 2024 according to OKCountdown. 

On the Flipside

• Bitcoin’s current trading price of $65,315 marks an approximate 5% decline from its day-high price of $69,838.
• Despite the heightened anticipation for a post-halving price appreciation, the event’s ability to defy the industry’s track record of volatility and price pullbacks remains to be seen.
• The consistent rise in BTC hash rate signals strong miner confidence in the upcoming fourth Bitcoin halving.

Why This Matters

The significant influx of funds into the market highlights increased participation and shifting investor confidence, and sustaining this momentum can positively impact the trajectory and price of Bitcoin ahead of halving.

Find out more about Bitcoin’s price performance ahead of halving here:

Bitcoin’s Price Drop Sparks Pre-Halving Danger Zone Concerns  

Discover how this native token relinquished its gains following an ATH recovery:

SUI Plunges Below $2 Peg as Market Faces Downturn