Bitcoin gains 7% as $913 million flows into ETFs

Bitcoin (CRYPTO:BTC) has recorded a 7.68% increase over the past 30 days, contrasting with declines in major U.S. equity indexes, according to Google Finance data.

During the same period, the S&P 500 dropped by 6.79% and the Nasdaq fell by 8.14%.

“We’re not quite there yet, but if Bitcoin holds strength through the upcoming CPI, as well as ongoing Powell-related and equity earnings volatility, the decoupling narrative could evolve from ‘temporary divergence’ to ‘regime change,’” analysts at Bitfinex noted.

Despite recent gains, Bitfinex analysts cautioned that Bitcoin’s relative strength against U.S. equities has not yet been confirmed as a structural trend.

They pointed out that Bitcoin has previously experienced short periods of outperformance, only to eventually realign with the broader market.

Nvidia, a technology company that has outperformed Bitcoin over the past decade, saw its stock decline by 15.4% during this period.

Bitfinex analysts attributed Nvidia’s decline to factors such as the “effective ban on advanced chip exports to China and tariff-driven volatility.”

“There is a near zero chance of Nvidia outperforming Bitcoin over the next 10 years,” commented Cory Klippsten, CEO of Swan Bitcoin, in May 2024.

April 22 saw $913 million in spot Bitcoin ETF inflows, marking the largest single-day inflow since late January.

“This backdrop favors Bitcoin as the ‘cleanest shirt in the dirty laundry,’” according to Bitfinex.

They added that Bitcoin’s dominance in the crypto market has risen to 64.39%, a level not seen since late 2021, based on TradingView data.

Market participants are watching the April Consumer Price Index, published May 13, after March’s CPI showed a year-over-year decrease to 2.4%, the lowest since February 2023.

“Given that our stablecoin minting indicator has yet to return to high-activity levels, we remain cautious about the sustainability of the current Bitcoin rally,” said Markus Thielen, head of research at 10x Research.

At the time of reporting, the Bitcoin (BTC) price was $92,675.17.