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

The market landscape continues to favor a bullish outlook for bitcoin, currently trading at $77,060.72, despite recent developments in Iran and DeFi hacks making headlines. Notably, U.S.-listed spot ETFs saw an influx of $663 million on Friday, marking the largest intake since January 15. Total inflows for the week reached $996 million, up from $786 million the previous week, as per data from SoSoValue, indicating robust institutional interest in the cryptocurrency. For a significant price surge to materialize, this trend needs to be consistent. According to Timothy Misir, head of research at BRN, "The regime of ETF flows offers a secondary insight: steady inflows signify structural demand, whereas intermittent flows suggest tactical positioning, with consistency being more crucial than magnitude." Bitcoin has been trading just above $75,000 after reaching highs of over $78,000 on Friday, based on CoinDesk data, with its price largely stable over the past 24 hours. Similar trends are observed in ether, XRP, Solana, and other major tokens. The AAVE token of DeFi platform Aave has seen a 1% drop to $90 due to collateral damage from the KelpDAO hack over the weekend. The DeFi dominance rate, measuring the share of DeFi coins in the total crypto market value, remains steady at around 3%. Alex Kuptsikevich, chief market analyst at FxPro, noted, "The pressure on the leading cryptocurrency is tied to negative reactions in stock markets to news about Iran, reducing risk appetite. BTC has significantly lagged behind equities in recent days, building potential but not yet realizing it." Recent reports indicate the U.S. seized an Iranian cargo ship attempting to bypass port restrictions. Traders are actively building short positions, betting against a breakout, which could lead to a "short squeeze" if prices remain steady, forcing traders to cover their bearish bets and potentially pushing spot prices higher. For in-depth analysis of today's altcoin and derivatives activity, see Crypto Markets Today, and for a comprehensive list of this week's events, refer to CoinDesk's Crypto Week Ahead. A key trend to watch is the weekly price swings in Solana, with a notable level being $95.16, the low recorded in April. Solana has remained below this level for 11 consecutive weeks after dropping below it in early February. In technical analysis, a level that previously acted as support often becomes resistance once broken, meaning traders who bought around that level may now look to sell if prices revisit it, limiting upside momentum. The fact that SOL has not yet climbed back above this level points to sustained bearish sentiment and potential for deeper losses, with the next major support seen at $50. A strong move above this level, backed by a surge in trading volumes, is necessary to invalidate the bearish outlook.