Bitcoin ETF Inflows Surpass $996 Million, Fueling Bullish Sentiment Amid DeFi Uncertainty

Despite recent developments in Iran and DeFi hacks, the bitcoin market continues to exhibit a bullish trend, with the price of BTC currently at $77,611.93. Last week, U.S.-listed spot ETFs saw significant inflows of $996 million, with $663 million coming in on Friday alone, according to SoSoValue data. This substantial investment suggests strong institutional interest in the cryptocurrency. For a sustained price rally, consistent inflows are necessary. Timothy Misir, head of research at BRN, notes that "ETF flow regimes provide a secondary read: Sustained inflows signal structural demand, while intermittent flows indicate tactical positioning, with consistency mattering more than magnitude." Bitcoin's price has remained relatively stable over the past 24 hours, hovering just above $75,000 after reaching highs of over $78,000 on Friday. Similar stability is observed in other major tokens such as ether, XRP, and Solana. The DeFi platform Aave's AAVE token has seen a 1% drop to $90 following the KelpDAO hack, with the DeFi dominance rate remaining steady at around 3%. According to Alex Kuptsikevich, chief market analyst at FxPro, the pressure on bitcoin is linked to negative reactions in stock markets to news about Iran, reducing risk appetite. However, this has created potential for a breakout, which has yet to materialize. Traders are actively building short positions, betting against a price increase, which could lead to a "short squeeze" if prices hold steady, potentially pushing spot prices higher. In other news, the U.S. attack on an Iranian cargo ship has further reduced risk appetite. For more analysis on altcoins and derivatives, see Crypto Markets Today, and for a comprehensive list of events this week, see CoinDesk's Crypto Week Ahead. A key level to watch is $95.16, the low registered in April for Solana, which has remained below this level for 11 consecutive weeks. A strong move above this level, backed by increased trading volumes, is needed to invalidate the bearish outlook, with the next major support seen at $50.