Strong Bitcoin Funds Inflows amid Trump’s Optimism

Bitcoin ETFs recorded net inflows of $802.5 million on January 21, extending a four-day streak as Bitcoin maintained its price above $105,000. Bitcoin ETFs record $802.5 million inflows on January 21.

BTC ETFs saw significant inflows on January 21, totaling $802.5 million. This marks the fourth consecutive day of inflows, with more than $3.2 billion added during the series. Despite minor setbacks, the strong performance underscores sustained interest in bitcoin-backed investment products.

Among the twelve bitcoin ETFs, BlackRock’s IBIT fund stood out, leading the wave of inflows with $661.9 million – the fund’s highest one-day inflow for the third consecutive day. This was followed by Grayscale’s Bitcoin Trust microfund, which attracted $136.39 million.

Other notable shareholders included ARK 21Shares ARKB Fund with $8.51 million, Fidelity’s FBTC Fund with $6.97 million, and Franklin Templeton’s EZBC Fund $6.18 million. By contrast, Bitwise’s BITB fund saw outflows of $17.41 million, while several other Bitcoin ETFs recorded zero net inflows.

Trading volume increased while total inflows reached about $39 billion

The 12 Bitcoin ETFs reported a total trading volume of $5.05 billion on January 21, demonstrating strong investor activity. Since their inception, these exchange-traded funds have collectively attracted $38.98 billion in net inflows, underscoring their growing role in institutional investments in cryptocurrencies. Observers note that prolonged interest and institutional adoption of Bitcoin may strengthen its position as a hedge against inflation.

Will the owner liquidate the assets to make a profit, or is this just a security measure? Understanding the intention behind this reactivation is crucial as it serves as a potential indicator of market sentiment.

Bitcoin reactivation: its impact on the market and investors

The reactivation of a long-inactive bitcoin wallet is an important event in the cryptocurrency ecosystem. Holding a staggering amount of around $678 million in bitcoin raises vital questions among investors and cryptocurrency analysts alike. Will the owner liquidate the assets to make a profit, or is this just a security measure? Understanding the intention behind this reactivation is crucial as it serves as a potential indicator of market sentiment.

Market response and investor sentiment

Although the immediate reactions were muted due to Bitcoin’s current liquidity and market valuation exceeding $500 billion, such movements often affect investor sentiment. The cryptocurrency, which is currently trading near the crucial threshold of $105,000, faces psychological resistance as it moves through this pivot point. Observers note that prolonged interest and institutional adoption of Bitcoin may strengthen its position as a hedge against inflation.

Short-term vs. long-term value volatility

While some analysts predict a potential short-term volatility caused by the potential liquidation of these funds, the depth of the bitcoin market suggests that any price corrections may be short-lived. The historical context surrounding Bitcoin reinforces its narrative as a long-term store of value. Increases in institutional investments reinforce the view that Bitcoin is more than just a speculative asset; it is a key component of a diversified investment portfolio.

Key price levels to watch

For seasoned investors and newcomers, monitoring key price levels remains vital. The $100,000 level represents a crucial support area, while the $110,000 threshold is where significant resistance is expected. Bitcoin’s ability to maintain its value despite various volatility indicates an increasing maturity within the cryptocurrency market, which in turn leads to enhanced confidence among investors regarding its long-term potential.

Bitcoin controversy at Davos and Trump’s return

Bitcoin and the future of the cryptocurrency industry sparked fierce controversy at the 2025 edition of the World Economic Forum in Davos, Switzerland, where US President Donald Trump celebrated his return to the Oval Office.

During the only session on cryptocurrencies at this year’s forum, industry leaders painted an upbeat outlook for the sector in the U.S. despite Mimcoins’ obsession centered around the launch of Trump’s official token (TRUMP).

Coin base CEO Brian Armstrong responded to a question from Coin telegraph during the session, asserting that the explosive performance of Trump Mimcoins will not hinder efforts to create a $104699 Bitcoin strategic reserve, an idea Trump endorsed in 2024.

“I don’t think this has undermined anything regarding Bitcoin’s strategic reserve. This effort is still alive and well. Armstrong said Cynthia Loomis in the U.S. Senate is really pushing the idea.

The idea of creating a Bitcoin reserve was promoted by the likes of Loomis, Trump and Micro Strategy founder Michael Sailor during the Bitcoin 2024 conference in Nashville, Tennessee.

Armstrong explained the proposal to delegates at the World Economic Forum session.

“There is a proposal for the US government to start holding bitcoin. Like many countries, the U.S. government holds reserves in various assets such as gold, oil or rare earths such as palladium,” he added.

Lisitia Kganyago, governor of the Reserve Bank of South Africa, was the only member not specializing in cryptocurrencies.

Kjanyago said South Africa was unlikely to follow suit if the U.S. started stockpiling bitcoin and questioned the merits of such a decision. Gold has a long history. There was once a gold standard. Currencies were pegged to gold.

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