BTC tops $94K, ETH breaks $3,200 as crypto ETFs see $1.1B weekly inflow
Bitcoin briefly climbed above $94,000 and was trading around $93,279 (up ~2.0% over 24h) while Ethereum surged past $3,200 (up ~6.4% over 24h), possibly aided by the Fusaka upgrade. Crypto ETFs reversed four weeks of outflows last week with $1.1 billion of net inflows — the largest in seven weeks. U.S. funds led the inflows with $994 million (over 90% of the total), Canada contributed $98 million and Switzerland $24 million; Germany saw $57 million of outflows. By allocation, BTC products received $461 million and ETH products $308 million. Short-biased positions declined sharply — Bitcoin short ETPs saw $1.9 billion withdrawn. Market volatility triggered liquidations: Coinglass reported 112,248 liquidations in 24 hours totaling $404 million. U.S. equities rose after an ADP jobs miss increased expectations for Fed rate cuts; CME FedWatch priced a ~90% chance of a 25bp cut at the Dec 9–10 meeting. For traders: rising ETF inflows and renewed institutional participation are supportive for price momentum, while elevated leverage and recent large liquidations increase near-term volatility risk.
Bullish
The news is overall bullish. Key drivers: (1) Significant net inflows into crypto ETFs ($1.1B) — led by US funds — indicate renewed institutional demand and capital rotation back into spot/ETP products, a classic positive catalyst for price appreciation. (2) BTC and ETH price breakouts (BTC > $94K, ETH > $3,200) show bullish momentum likely reinforced by inflows and fundamental upgrades (Fusaka for ETH). (3) Macro signals — weaker ADP employment and higher odds of a Fed rate cut — further support risk assets. However, caution is warranted: large recent liquidations (112k liquidations, $404M) and the rapid unwinding of short ETPs (BTC short outflows $1.9B) suggest elevated leverage and positioning shifts, which can amplify intraday volatility and produce sharp pullbacks. Historical parallels: previous ETF inflow waves (post-spot ETF approvals) have led to multi-week rallies in BTC and ETH, but also episodic sharp corrections when leveraged longs get squeezed. Trading implications: favorable medium-term trend for risk-on positions and momentum strategies; short-term risk remains high — use position sizing, stop losses, and monitor ETF flows, funding rates and liquidation data closely.