Bitcoin's Recovery Gains Momentum Amid Improving Sentiment

Bitcoin's recent recovery suggests growing investor confidence, particularly as US spot Bitcoin investment products continue to attract positive flows.

The emergence of spot Bitcoin ETFs has changed the crypto market's capital flow structure, allowing for sustained participation from institutional investors and traditional market participants. These funds have recorded six consecutive weeks of net inflows, totaling around $3.4 billion.

However, daily ETF flows may continue to diverge due to profit-taking after recent recoveries. The market remains highly sensitive to US monetary policy expectations, with the Fed's stance on interest rates and inflation influencing liquidity conditions.