Bitcoin consolidates above $70,000 as volatility falls

Trading activity was muted on Thursday , with crypto market volatility declining as investors continued to digest yesterday’s higher-than-expected Consumer Price Index report and its implications for the future of interest rates and risk assets.

Bitcoin basically consolidated around $70,000. According to BitTorrent terminal data, Bitcoin's trading range on Thursday was $69,560 to $71,310, with neither bulls nor bears gaining the upper hand. As of writing this article, Bitcoin is trading at $70,197, up 1% in 24 hours.

Altcoin markets were mixed. Bittensor (TAO) led gains with a 15.3% gain after listing on Binance , followed by MANTRA (OM) with a 12.5% ​​gain, Neo (NEO) with a 10.3% gain, Nervos Network (CKB) with a 13.7% loss, Saga (SAGA) with a 13.6% loss, and Uniswap (UNI) with a 24-hour loss of 11.5% as it continued to retreat after receiving a Wells notice from the SEC yesterday.

The US stock market rebounded, led by the technology sector, pushing the Nasdaq index higher. As of the close, the Dow Jones Industrial Average closed close to flat, the S&P 500 rose 0.74%, and the Nasdaq rose 1.68%.

ETF flows are stable

The sideways movement in Bitcoin prices over the past few weeks has coincided with stabilizing inflows into spot Bitcoin exchange-traded funds (ETFs), which had set records for inflows and trading volumes in their first two months of trading.

The nine U.S. spot Bitcoin ETFs have recently recorded multiple days of net outflows, but overall, the total assets under management continue to rise. Data provided by Dune Analytics shows that these net flows have reached $12.5 billion since their launch, and currently hold 839,000 Bitcoins, worth approximately $58.9 billion.

As shown in the above chart, inflows appear to be consolidating. According to some analysts, inflows may soon start climbing again due to some bullish developments.

Jan van Eck, CEO of VanEck , said that retail investors accounted for the majority of inflows into U.S. spot Bitcoin ETFs, and large investments from traditional financial (TradFi) participants were also underway.

“I’ve been surprised by the initial success of the ETFs, but I don’t think it’s traditional investors yet, ” van Eck said in an interview at Paris Blockchain Week. “I still think 90% of the traffic is retail, there are some whales and some other institutions that have allocated part of their portfolio, but they are the ones who already hold Bitcoin directly.”

Jan van Eck said that to date, no bank in the United States has officially approved or allowed its financial advisors to recommend Bitcoin, and while next month may see the arrival of some major institutional investments from banks and traditional companies, the Bitcoin ETF landscape is still in its infancy.

van Eck also pointed out that the sharp rise in BTC prices in early April did not occur during U.S. trading hours, which indicates the growing influence of Asian markets. For example, the upcoming launch of spot Bitcoin ETF products in Hong Kong may further drive demand.

BTC bulls “indecisive” around $71,000

Meanwhile, market observers have found that funding rates remain low despite BTC’s recent price rebound.

Philip Swift, co-founder of statistical platform Look Into Bitcoin, summarized: “Since BTC climbed above $70,000, the Bitcoin funding rate finally looks healthy. Bitcoin needs this kind of volatility consolidation to clear out those who are trying to take long leverage, which is an encouraging sign for bulls.”

Daan Crypto Trades said that due to several obstructions in the move towards all-time highs, traders are now "hesitant" to go long on BTC. Analysts believe: "It is very important to break through and hold $71,500. If successful, then new all-time highs should only be a matter of time."

Keith Allen, co-founder of Material Indicators, said on the X platform that the upcoming block subsidy halving and the current Bitcoin price structure are more important focuses in the future. He said: "The bullish case for Bitcoin is built around a series of higher lows. The core of the bearish case is that the bulls have failed to validate the R/S flip at the trendline, $69,000 or the 21-day moving average. $69,000 remains the most critical level to watch."

The BTC halving is expected to occur between April 19 and 20. The current overall market value of cryptocurrencies is $2.62 trillion, with Bitcoin accounting for 53% of the market value.