Bitcoin's price motion has remained volatile in recent sessions, and recovery attempts have struggled to achieve traction. BTC has tried to stabilize after recent setbacks, but demand from exchange-traded fund investors appears to be mixed.
Despite this hesitation, BlackRock continues to emphasise Bitcoin as a key long-term allocation, signaling confidence that goes beyond short-term price fluctuations.
Bitcoin appears to be a favourite of BlackRock
BlackRock has named its spot Bitcoin ETF amongst its top three investment themes for 2025. The decision reflects long-term belief somewhat than short-term trading momentum. While Bitcoin has seen wild price fluctuations this yr, capital inflows into the ETF remain significant.
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Cumulative inflows of the BlackRock Bitcoin ETF. Source: SoSoValue
Year-to-date net inflows into BlackRock's Bitcoin ETF are roughly $29.6 billion. Cumulative net inflows have reached $62.5 billion since launch. These numbers highlight ongoing institutional interest and help explain why BlackRock continues to spotlight Bitcoin in its strategic outlook despite market volatility.
Bitcoin is performing well within the futures market
Short-term ETF trends paint a contrasting picture. Bitcoin ETFs saw outflows on about half of trading days last month. This pattern suggests a slowdown in demand amongst some investors, particularly those with shorter investment horizons.
On Monday, Bitcoin ETFs recorded a complete of $142 million in net outflows. The decline underlines the restraint within the face of price uncertainty. While long-term capital stays tied up, short-term capital flows suggest investors are cautious and waiting for clearer signals before increasing their commitment.
Bitcoin spot ETF flows. Source: SoSoValue
Derivatives data adds one other layer to the outlook. Despite the uneven spot demand, perpetual futures positioning is increasing. As Bitcoin recently traded back above $90,000, the perpetual open interest rose from 304,000 BTC to 310,000 BTC, a rise of about 2%.
Financing rates have also increased, rising from 0.04% to 0.09%. This combination suggests renewed long leveraged positioning. Traders seem like preparing for a possible year-end reversal, increasing risk appetite at the same time as spot demand stays mixed.
Rising open interest coupled with higher funding often reflects growing optimism. However, it also increases sensitivity to volatility. When price momentum weakens, leveraged positions could be quickly unwound, magnifying short-term fluctuations.
BTC price could see short-term gains
At the time of writing, Bitcoin is trading near $87,400, slightly below the resistance at $88,210. The technical structure suggests room for an upward attempt. Short-term momentum could improve if buyers defend current levels and overall sentiment stabilizes.
Seasonal aspects can influence price developments. The Christmas trading week has historically resulted in increased inflows and reduced liquidity. If demand improves, Bitcoin could rise towards $90,308, supported by leveraged positioning and renewed investor interest.
If optimism fails to materialize, downside risks remain. A break below $86,247 would weaken the recovery structure. In this scenario, Bitcoin could slide towards $84,698. Such a move would invalidate the bullish thesis and increase short-term caution despite long-term institutional support.
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Article source: beincrypto.com
The post “BlackRock Declares Bitcoin ETF a “Top 3” Investment Topic Despite Price Uncertainty” appeared first on Crypto Adventure.
