Crypto Daddy
Inflows into bitcoin ETFs remain key driver, cumulative inflows via spot bitcoin ETFs surpass $41 billion
Bitcoin opened the week strong, climbing to nearly $106,000 on Monday morning. Today’s jump brought Bitcoin within touching distance of January’s high of $109,356, adding fresh momentum to the largest cryptocurrency. The surge comes as the BBC reports confirmation of progress in US-China trade talks, with US Treasury Secretary Scott Bessent declaring a 90-day pause.
– After vigorous discussions, the US and China have agreed to a 90-day pause on tariffs, meaning both sides will reduce their tariffs by 115 percent – Bessent said.
The US will reduce tariffs on Chinese goods from 145 to 30 percent, while China will reduce tariffs on US goods from 125 to 10 percent for 90 days. The move also coincided with a risk-on environment in markets. Gold fell 1.4 percent to $3.278 an ounce as optimism about U.S.-China trade talks boosted safe-haven demand. Meanwhile, WTI crude futures rose 1.5 percent, extending a multi-day rally.
Bitcoin’s price action reflects this macro rotation, tracking gains in oil and stocks while distancing itself from gold. This pattern has emerged during a period of reduced risk aversion, suggesting that traders are reclassifying bitcoin as a beta macro asset rather than a defensive hedge. Inflows into bitcoin ETFs also remain a key driver. According to data compiled by Farside Investors, cumulative inflows into spot bitcoin ETFs have surpassed $41 billion, with $321 million in inflows on Friday. The products are absorbing bitcoin at rates six times higher than current mining emissions. These inflows are adding to the pressure on prices, especially during periods of low liquidity when order book depth is limited.
The broader context reflects improved macro sentiment. Media reports suggest that China has now confirmed the suspension of tariff countermeasures, helping to ease investor concerns about tariffs and global demand. This week’s rally follows bitcoin’s recovery above $100,000 last week, when renewed inflows and improving sentiment erased April’s tariff-related decline. Traders are now expecting sustained momentum as the largest cryptocurrency approaches previous highs.
Monday’s action puts bitcoin back near the upper end of its 2025 range. Whether flows and macro conditions can support a sustained move above January’s high will likely depend on upcoming catalysts, including Tuesday’s U.S. consumer price index (CPI) report and commentary from the Federal Reserve. For now, bitcoin’s return to $105,000 reaffirms its position at the forefront of risk appetite in global markets.
