Bitcoin ETF: A $675M Surge, US Government’s Reluctance, and More Drama Than a Soap Opera!

by

Bitcoin, that fiery beast of a currency, continues to gallop ahead, fueled by institutional momentum like a man sprinting towards freedom. On May 2, 2025, the spot ETFs recorded a jaw-dropping $675 million in net inflows, with zero (yes, ZERO) net outflows across all twelve Bitcoin ETFs. This marks one of the strongest single-day performances since the launch of these financial marvels. Truly, a day that shall be etched in the annals of financial history… or at least in the memes of the future.

Meanwhile, Ethereum ETFs joined the bandwagon with a modest, yet respectable, $20.1 million in net inflows across the nine funds. SoSoValue data, ever the diligent observer, confirms this trend. Michael Saylor, that ever-enthusiastic evangelist of Bitcoin, claims this is just the beginning. At the Bitcoin Standard Corporation’s Investor Day, Saylor boldly declared, “IBIT will be the biggest ETF in the world in ten years.” If you thought that was ambitious, wait for it…

Analyst Weighs In

Hold on to your hats, because Bloomberg’s Senior ETF Analyst, Eric Balchunas, wasn’t quick to dismiss this wild claim. He grinned and mused, “It’s possible, especially if IBIT starts taking in more cash than VOO.” But he wasn’t about to sugarcoat it: “That would require inflows well north of $1 billion a day—more likely in the range of $3 to $4 billion daily. Extraordinary things would have to happen, but hey, it’s possible. Just don’t expect it to be easy.” Talk about raining on a parade with a thunderstorm of reality.

US Won’t Purchase BTC: Hayes

Now, despite Bitcoin’s meteoric rise, the US government remains as reluctant as a cat near water when it comes to embracing this asset beyond what it has acquired from law enforcement seizures. Enter Arthur Hayes, co-founder of BitMEX, who recently threw cold water on any thoughts of a US Strategic Bitcoin Reserve. “I’m not really into the whole Strategic Reserve situation,” Hayes said, practically rolling his eyes. “The US is a deficit country, and the only way that a BTC Strategic Reserve can be implemented is when the government doesn’t sell the Bitcoin ‘they took from people.’”

He pointed out the rather inconvenient truth: the US has already seized 200,000 BTC, now worth a staggering $18 billion. It’s politically suicidal for any official to announce plans to buy more Bitcoin with freshly printed dollars. “Especially when the popular narrative is a bunch of Bitcoin bros going to the club,” Hayes quipped. “Is that really the image you want to project for your policy?” Ouch. That’s the kind of burn you feel in the soul. 🍻

Chart Analysis: Bullish and Bearish Scenarios

Now, onto the technicals. As of May 3, Bitcoin is trading at $96,251.58, down by a mere 0.34% in the last 24 hours. Don’t let that fool you—this crypto titan is still flexing its muscles. The RSI (Relative Strength Index) stands at 67.87, creeping toward overbought territory, but there’s still room to run. 😎

On the other hand, the MACD (Moving Average Convergence Divergence) is bullish. The MACD line (3,153.82) is comfortably above the signal line (2,688.95), but the gap between them is shrinking, signaling increasing selling pressure. It’s like the calm before the storm, folks.

BTC Daily Chart | Source: TradingView

Bitcoin has already broken above the 0.786 Fibonacci retracement level ($79,238.75) and is eyeing the swing high of $96,028.45. A daily close above this could launch it into new all-time highs. The Fibonacci 0.236 level at $90,987.26 may act as key support if the price takes a little dip. A breakdown below that, however, could send Bitcoin tumbling to lower levels of $87,868.57 and $85,347.98. The market, as ever, is unpredictable, like a roller coaster ride with a blindfold on. 🎢

Read More

2025-05-03 20:42