U.S. spot bitcoin exchange-traded funds (ETFs) on Wednesday recorded their biggest one-day inflows since Nov. 11, coinciding with a volatile crypto market during which bitcoin it recovered to almost $90,000 before reversing and falling below $86,000.
In total, the funds recorded net inflows of $457.3 million, the bulk of which ($391.5 million) went to the Fidelity Wise Origin Bitcoin Fund (FBTC), according to data from Farside. This ranks as one of the top five entry days for FBTC. BlackRock’s iShares Bitcoin Trust (IBIT) also saw strong demand, recording inflows of $111.2 million.
Bitcoin dominance, which measures BTC’s share of the total cryptocurrency market capitalization, has risen to 60%. This is the highest level since November 14, when bitcoin was trading near $100,000. The largest cryptocurrency is currently trading around $87,000.
Several macroeconomic events scheduled for today could further amplify volatility in bitcoin price action. Bitcoin’s implied volatility, which reflects market expectations about future price swings based on options pricing, is currently just below 50 according to Volmex’s Bitcoin Implied Volatility Index (BVIV). This level is historically low and suggests a moderate risk assessment despite recent market movements.
The Bank of England (BOE) is expected to cut interest rates by 25 basis points at 12:00 UTC, lowering the benchmark rate to 3.75%. The European Central Bank (ECB) is expected to keep rates stable at 2.15%. Later in the day, both the US and Japan will release inflation data, events that could increase volatility in global markets, including cryptocurrencies.
