Bitcoin ETF inflows surge to $663M as KelpDAO hack rattles DeFi

Bitcoin ETF inflows strengthened sentiment despite DeFi stress. U.S. spot Bitcoin ETFs pulled in $663 million on Friday—the largest since Jan. 15—taking total inflows to $996 million last week (up from $786 million the prior week), per SoSoValue. Bitcoin held just above $75,000 after briefly trading above $78,000 on Friday, with similar price stability seen in ETH, XRP, and SOL. At the same time, DeFi risks weighed on majors linked to lending. Aave’s AAVE token fell about 1% to around $90 after the weekend KelpDAO exploit. The report highlights “collateral damage” and user withdrawals; DeFi dominance stayed near 3%, suggesting the broader DeFi market’s share hasn’t yet broken lower. Traders are also positioned cautiously: they are building short positions betting against a breakout. If BTC price holds steady, a short squeeze could force bearish traders to cover, potentially boosting spot prices. The macro backdrop remains mixed. The article notes Iran-related developments and risk appetite changes, while it also mentions an attack and seizure involving an Iranian cargo ship attempting to bypass port restrictions. Technical note for traders: Solana (SOL) remains below a key resistance level ($95.16) for roughly 12 weeks, with the next major support cited near $50. A decisive move back above the $50 area with higher volumes would help invalidate the bearish setup. Overall, the bitcoin ETF inflows signal structural demand, but KelpDAO-driven DeFi jitters and bearish positioning raise near-term volatility risk for BTC and the broader alt complex.