Bitcoin Rebounds as ETF Inflows Return

Bitcoin rose to $66,545.45 in the latest session, extending a rebound from $64,690.80 on July 19 and $65,230.03 a day later. The token is now holding above its 50-day moving average of $63,093.48, while the RSI reading of 63.9 suggests momentum has improved without yet flashing an extreme overheated signal.

BlackRock’s iShares Bitcoin Trust, the largest spot bitcoin ETF, is also stabilizing after a volatile run. IBIT closed at $36.89 on July 20, up from $36.35 on July 17, while Fidelity’s FBTC rose to $56.69 from $55.82 over the same stretch, underscoring a broadening recovery in the listed bitcoin complex.

The rebound comes after a sharp drawdown earlier in the year, when bitcoin fell as low as $62,702.10 on Feb. 5 and the ETF market was hit by sustained redemptions. That selloff left both the coin and the funds vulnerable to shifts in risk appetite, geopolitical stress and moves in the broader dollar and equity market.

For investors, the key question is whether the inflow streak turns into a durable trend or just a short-lived bounce. Adalytica’s Bitcoin Fear & Greed Index is at 100, its highest reading, while the S&P 500 trade signal remains in fear, showing that crypto has re-entered a hot zone even as broader risk sentiment is still fragile.

The next test is whether spot ETF demand can keep pace if bitcoin approaches the $66,165.81 upper Bollinger Band and retests the recent highs. Sustained inflows would strengthen the case for a move toward the prior highs above $70,000; a reversal in ETF flows would quickly renew pressure on the market.