Bitcoin Bull Case Gains Momentum with Nearly $1 Billion in ETF Inflows Amid DeFi Concerns

Despite concerns over Iran and DeFi hacks, the outlook for bitcoin remains positive, with the cryptocurrency trading above $75,000 after reaching highs of over $78,000 on Friday. Institutional interest is strong, with U.S.-listed spot ETFs attracting $663 million in inflows on Friday, totaling $996 million for the week, according to SoSoValue data. This sustained interest is crucial for a significant price rally. Timothy Misir, head of research at BRN, notes that consistent ETF inflows indicate structural demand, while intermittent flows suggest tactical positioning. Bitcoin's price has held steady over the past 24 hours, with similar patterns seen in other major tokens such as ether, XRP, and Solana. However, DeFi platform Aave's AAVE token has dropped 1% to $90 following the KelpDAO hack, with the DeFi dominance rate remaining flat at around 3%. Alex Kuptsikevich, chief market analyst at FxPro, attributes the pressure on bitcoin to negative reactions in stock markets to news about Iran, which has reduced risk appetite. Meanwhile, traders are building short positions, potentially setting up a 'short squeeze' if prices hold steady. In other news, the U.S. attack on an Iranian cargo ship has further reduced risk appetite. Technical analysis of Solana's weekly price swings shows a key level of $95.16, which has acted as resistance since early February. The fact that SOL has not yet climbed back above this level suggests sustained bearish sentiment and potential for deeper losses, with the next major support level seen at $50. A strong move above this level, backed by a surge in trading volumes, is needed to invalidate the bearish outlook.