Bitcoin ETFs Surge Amid Fed’s Rate Decision

In a week marked by volatility, Bitcoin ETFs have seen a significant resurgence, driven by the US Federal Reserve’s decision to maintain interest rates. This move has sparked renewed optimism among investors, particularly institutional players, who are increasingly drawn to BTC-backed funds. The week began with a strong inflow of $425.45 million into Bitcoin spot ETFs on Monday. However, this momentum was briefly interrupted on Tuesday as investors withdrew $85.64 million ahead of the Federal Open Market Committee (FOMC) meeting. The tide turned on Wednesday following the Fed’s announcement, resulting in a sharp rebound with $142.31 million flowing back into BTC ETFs.

Bitcoin Price Prediction: Rally on the Horizon

Amidst the ETF activity, Bitcoin’s price trajectory is also drawing attention. Analysts are pointing to four key on-chain metrics that suggest a potential rally to $100,000 in May. These include a decline in exchange reserves, strong ETF inflows, a moderate MVRV ratio, and increased whale activity. Data from CryptoQuant indicates a significant drop in Bitcoin held on centralized exchanges, with only 2.47 million BTC remaining. This decline often signals heightened buying activity, as investors move their holdings off exchanges, suggesting a bullish outlook for Bitcoin.

Weekly Inflows to Bitcoin ETFs Decline

Despite the positive signals, Bitcoin ETFs experienced a notable drop in weekly inflows, falling 40.8% to $1.81 billion from the previous week’s $3.06 billion. This decline occurred as Bitcoin’s price dipped below $95,000. However, the cumulative net inflow for US Bitcoin ETFs remains robust at $40.24 billion, with total net assets across all Bitcoin ETFs reaching $113.15 billion. This recent slowdown follows a period of strong growth in April, highlighting the market’s dynamic nature.

BlackRock Boosts Bitcoin Exposure

In a strategic move, BlackRock, the world’s largest asset manager, has increased its Bitcoin exposure to $5.4 billion in Q1 of 2025. The firm’s latest 13F filing reveals a 124.7% increase in its position in its own spot Bitcoin ETF, IBIT, with an additional purchase of 3,248,304 shares. This brings its total holdings to over 5.8 million shares, valued at $273.99 million. Notably, BlackRock has also diversified its Bitcoin investments by acquiring shares in competing ETFs, including Fidelity’s FBTC and Grayscale’s GBTC, marking a significant evolution in its investment strategy. Additionally, the firm has doubled down on securities and bonds of companies with Bitcoin exposure, further solidifying its commitment to the cryptocurrency space.

In summary, the cryptocurrency market is witnessing a confluence of factors that could drive Bitcoin’s price higher. Institutional interest, as evidenced by ETF inflows and strategic investments by major players like BlackRock, coupled with favorable on-chain metrics, paints a bullish picture for Bitcoin in the near term.