Spot Bitcoin ETFs Pull in $532M as BTC Surges Past $80K

Spot Bitcoin ETFs recorded $532.21 million in net inflows on May 5, as Bitcoin reclaimed the $80,000 level for the first time in three months. The cryptocurrency is trading at $80,861, up 0.65% over the past 24 hours, with its market cap now at $1.62 trillion, according to CoinMarketCap data.

BlackRock’s iShares Bitcoin Trust (IBIT) led the charge, absorbing $335.49 million in a single day. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed with $184.57 million, while Morgan Stanley’s Bitcoin ETF (MSBT) added $12.16 million, according to SoSoValue data. The remaining funds saw no significant activity, underscoring a concentrated appetite for the largest issuers.

This marks the third consecutive day of inflows for Bitcoin ETFs, totaling $1.18 billion since May 2. This surge follows a three-day period of outflows last week, during which $490.63 million exited these funds—highlighting the volatile nature of institutional sentiment.

Bitcoin Rallies Amid Geopolitical Easing

The recovery in Bitcoin’s price and ETF inflows coincides with easing geopolitical tensions. A ceasefire agreement between the United States and Iran has boosted broader market confidence, particularly in risk assets like cryptocurrencies. However, lingering concerns remain, with the U.S. military’s deployment of forces in the Strait of Hormuz raising questions about the stability of the agreement.

Bitunix analysts noted that Bitcoin’s move past the psychological $80,000 level was aided by a short-side liquidity squeeze in the $79,500-$81,000 range. Key support for leveraged longs now lies in the $77,000-$78,000 zone, suggesting traders are keeping a close eye on these levels to manage risk.

Macro factors are also playing a significant role. Expectations for U.S. Federal Reserve policy remain fluid, with the upcoming Non-Farm Payrolls report and inflation commentary likely to shape broader risk sentiment. If inflation expectations remain elevated, a hawkish Fed could pressure crypto valuations further, while softer economic data could revive interest in Bitcoin and other digital assets.

Institutional Demand Remains Strong

Bitcoin’s resurgence is being closely watched by institutional players, who appear to be positioning for longer-term gains. Regulatory clarity has also played a role, with the U.S. recently compromising on a contentious stablecoin provision within the Clarity Act. This has alleviated some concerns about the regulatory environment, potentially drawing more institutional capital into crypto.

Despite the positive momentum, Bitcoin remains well below its all-time high of $126,272, set on October 5, 2025. Over the past month, the cryptocurrency has gained 17.94%, but it is still down 14.25% over the past year, reflecting a mixed backdrop of macroeconomic pressures and market-specific developments.

Ether ETFs Show Signs of Life

While Bitcoin stole the spotlight, spot Ether ETFs also saw notable activity, registering $61.29 million in inflows on May 5. Cumulative ETF inflows for Ether have now surpassed $12 billion, marking a gradual recovery after a series of outflows in late April.

As market conditions evolve, the interplay between macroeconomic forces, institutional positioning, and geopolitical events will remain critical in shaping crypto price action. All eyes are now on the Federal Reserve’s next moves and Bitcoin’s ability to hold above key support levels in the coming days.

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