Bitcoin Price Recovery Fails to Reverse Bearish Trend Amid Rising Stock Market

Bitcoin's price has seen a minor recovery in recent days, rising to $62,615 after falling by over 50% from its all-time high. The coin's price increase coincided with some exchange-traded funds (ETF) inflows on Thursday, which rose by $221 million, ending a ten-day period of sustained outflows.

However, despite the brief rally, data suggests that American investors have been selling their assets in the past few months. In fact, ETF inflows jumped to $4.5 billion last month, marking the worst monthly performance since they were approved in 2024.

One possible reason for the outflows is that investors are rotating from the crypto market to stocks. Top US stock indices have recently hit a record high, with ETF inflows surging. The popular Vanguard S&P 500 ETF (NYSE:VOO) has added over $90 billion in assets this year and has crossed the $1 trillion mark.

Bitcoin also faces a major risk from Strategy (NASDAQ:MSTR), which hinted that it will start selling its Bitcoin holdings in the near term to boost its cash reserves. This could lead to further downward pressure on the coin's price, potentially pushing it below the support of $58,000 and even to $50,000.