• Bitcoin ETF inflows surged over 1,300% after the Fed held interest rates steady, signaling renewed investor confidence.
• Bitcoin’s price jumped 4.5% to $85,786 as market optimism grew, fueled by ETF demand and the Fed’s dovish stance.

Spot Bitcoin ETFs witnessed an explosive surge in inflows on March 20, marking a dramatic rebound after weeks of investor hesitation. The catalyst? The U.S. Federal Reserve’s decision to maintain interest rates at their current levels, a move that injected fresh optimism into the crypto market.

Bitcoin ETF Inflows Surge Over 1,300%

According to data from SoSoValue, 12 spot Bitcoin ETFs collectively attracted a staggering $165.75 million in net inflows on Thursday—a jaw-dropping 1,300% increase from just $11.8 million the day prior. This marked the fifth consecutive day of positive inflows, bringing the total to nearly $700 million over the past week.

Leading the charge was BlackRock’s IBIT, which recorded an impressive $172.14 million in net inflows, recovering sharply after a flat trading day. Other funds, including VanEck’s HODL, Fidelity’s FBTC, and Grayscale’s mini Bitcoin Trust, also saw inflows of $11.9 million, $9.19 million, and $5.22 million, respectively.

However, not all ETFs benefited from the surge. Bitwise’s BITB, Grayscale’s ETHE, and Franklin Templeton’s EZBC experienced combined outflows of nearly $32.7 million, highlighting that investor sentiment still varies across providers.

Fed’s Decision Fuels Market Optimism

The resurgence in Bitcoin ETF inflows follows a rough five-week stretch of outflows driven by macroeconomic uncertainties and geopolitical tensions. However, the Fed’s decision to hold interest rates steady provided a sigh of relief for investors. Fed Chair Jerome Powell’s dovish stance suggested that inflationary pressures, particularly from potential Trump-era tariffs, may be transitory—fueling speculation of future rate cuts.

Bitcoin and Crypto Markets React

Bitcoin responded swiftly to the bullish sentiment, surging 4.5% to $85,786 and briefly touching $87,431. Other major cryptocurrencies joined the rally, with Ethereum and Solana posting gains of 4% and 6%, respectively. The total crypto market cap jumped 3% to $2.947 trillion, while futures markets witnessed $355 million in liquidations, primarily from short positions.

Adding further momentum, the SEC confirmed that Proof-of-Work cryptocurrencies like Bitcoin, Litecoin, and Bitcoin Cash would not be classified as securities under current regulations—eliminating a potential regulatory overhang.

What’s Next for Bitcoin?

Despite the surge in ETF inflows, analysts remain divided on Bitcoin’s short-term trajectory. Technical indicators suggest Bitcoin is at a critical juncture, testing key resistance levels, including a descending trendline and the 100-day moving average. A breakout could signal further upside, while rejection at these levels may lead to downside pressure.

Some experts, like CryptoQuant CEO Ki Young Ju, believe the bull cycle might be nearing an exhaustion phase, with a potential prolonged consolidation before Bitcoin reaches new all-time highs. Others, including trader Great Mattsby, argue that Bitcoin remains within its long-term logarithmic uptrend, suggesting the next major peak could arrive in 2025-26.

The Fed’s steady interest rate decision has reignited investor confidence in Bitcoin ETFs, signaling renewed demand for regulated exposure to the leading cryptocurrency. While the short-term outlook remains uncertain, the broader trend suggests Bitcoin’s upward momentum is far from over. Whether it breaks out to new highs or faces another pullback, one thing is clear—the crypto market remains as dynamic as ever.

Spot BTC ETFs witnessed an explosive surge in inflows on March 20, marking a dramatic rebound after weeks of investor hesitation. The catalyst? The U.S. Federal Reserve’s decision to maintain interest rates at their current levels, a move that injected fresh optimism into the crypto market.