ETF Flows Buoy Cryptos, Bitcoin Breaches $87k

Buying pressure from ETF flows has bolstered crypto market sentiment, lifting Bitcoin to a 24-hour high of $87,360. Aggregate market capitalization increased more than a percent amidst a massive liquidation of short positions and a broad-based crypto rally.

Amidst Wall Street's tech-led rally, Bitcoin Spot ETF products in the U.S. witnessed net inflows jumping to $999 million on Monday from $433 million on Friday. iShares Bitcoin Trust ETF (IBIT) topped with net inflows of $381 million. ARK 21Shares Bitcoin ETF (ARKB) recorded net inflows of $289 million followed by Fidelity Wise Origin Bitcoin Fund (FBTC) that recorded net inflows of $239 million.

Ethereum Spot ETF products in the U.S. also witnessed net inflows rising to $270 million on Monday from $144 million on Friday. iShares Ethereum Trust ETF (ETHA) topped with net inflows of $110 million.

Hopes of a fresh diplomatic rescue effort to end the prolonged Middle East crisis dragged down crude oil prices, contributing to the surge in cryptocurrency prices. Brent Oil futures for November settlement are currently trading 1.8 percent lower at $98.55 whereas WTI Crude Oil for November settlement is trading 2.2 percent lower at $90.31. The softening in bond yields and the dollar's mild retreat that followed have also helped uplift cryptocurrency prices.