U.S. bitcoin ETFs see strongest inflows for over a month as BTC dominance hits 60%

U.S. spot bitcoin exchange-traded funds (ETFs) posted their largest one-day inflows since Nov. 11 on Wednesday, coinciding with a volatile crypto market during which bitcoin BTC$68,043.46 rallied to nearly $90,000 before reversing and falling below $86,000.

In total, the funds recorded net inflows of $457.3 million, most of which — $391.5 million — went into Fidelity Wise Origin Bitcoin Fund (FBTC), according to Farside data. This ranks as a top five inflow day for FBTC. BlackRock’s iShares Bitcoin Trust (IBIT) also posted strong demand, registering inflows of $111.2 million.

Bitcoin dominance, which measures BTC's share of the total cryptocurrency market capitalization, has climbed to 60%. This is the highest level since Nov. 14, when bitcoin was trading near $100,000. The largest cryptocurrency is currently trading around $87,000.

Several macroeconomic events scheduled for today could further amplify volatility in bitcoin price action. Bitcoin implied volatility, which reflects the market’s expectation of future price swings based on options pricing, is currently just below 50 according to the Volmex Bitcoin Implied Volatility Index (BVIV). This level is historically low and suggests subdued risk pricing despite recent market moves.

The Bank of England (BOE) is expected to cut interest rates by 25 basis points at 12:00 UTC, lowering the benchmark rate to 3.75%. The European Central Bank (ECB) is expected to hold rates steady at 2.15%. Later in the day, both U.S. and Japan are set to release inflation data, events that could increase volatility across global markets, including cryptocurrencies.