Bitcoin jumps over 5% to $81,450 in a week amid strong ETF inflows: What’s driving the rally?

The current macro backdrop looks moderately supportive for crypto, primarily because traditional risk sentiment is constructive and some inflationary pressure appears to be easing.

• Bitcoin peaked above $81,804, up 1.42% in 24h.
• Crypto markets show resilience despite challenges.
• Regulatory developments boost market sentiment.

Market Mastery

Webinar by Vishal Malkan

Find the weak links

in your portfolio by Vishal Malkan

Bitcoin peaked just above $81,804 in early trading on September 21, but trimmed some of those gains to trade at $81,452.23 (09:14 IST), up 1.42 percent over the past 24 hours and a 5.09 percent increase over the week despite a hawkish Federal Reserve and the Senate setback for the CLARITY Act, while steady ETF flows improved demand.

Crypto markets have shown notable resilience despite a difficult macro and policy backdrop.

"The move was supported by regulatory developments, including an SEC exemption for tokenised-stock trading and new CFTC crypto proposals sent for White House review, improving market sentiment. A sharp swing in oil prices also helped trigger a short squeeze," Prateek Gupta, Head of Business at Mudrex, said.

US spot Bitcoin ETFs finished the week with a marginal $6.2 million net inflow, as heavy midweek redemptions were offset by strong buying on Thursday and Friday. Ether ETFs were weaker, ending the week with roughly $140 million in net outflows.