Last week witnessed a significant shift in the flow of funds into spot Bitcoin exchange-traded funds (ETFs), with a collective net inflow of $948.3 million, compared to the $228.5 million recorded the previous week. This reversal marks renewed investor interest in these products and reflects growing confidence in Bitcoin's potential.

The recent surge in net inflows into spot Bitcoin ETFs stands in contrast to previous trends of outflows and minimal inflows. The Bitfinex Alpha report highlights this new trend, signaling a resurgence of investor appetite for digital assets.

During the previous week, there were no outflows from spot Bitcoin ETFs, a stark contrast to the $111.7 million withdrawn by investors in the preceding week. This reversal coincides with Bitcoin's bullish trajectory, marked by its highest daily close in five weeks. The rebound in Bitcoin's price was primarily driven by favorable regulatory developments and a softer-than-expected Consumer Price Index report in the U.S.

The interplay between macroeconomic indicators and Bitcoin's price dynamics underscores the cryptocurrency's sensitivity to economic shifts and policy changes. Bitfinex suggests that systematic investment plans are majorly driving passive demand, which is expected to sustain the influx of funds into spot Bitcoin ETFs in the near term.

At the time of writing, Bitcoin was trading at $69,750, reflecting a 13% increase over the past week. Bitfinex believes that this rally may indicate that the asset has established a market bottom. Moreover, the current on-chain support level for Bitcoin is identified at $60,000. Sustained inflows into spot ETFs could potentially maintain Bitcoin's price range above $60,000-$62,000, with analysts anticipating a period of consolidation or further price increases from this level.

Bitcoin's stability is further bolstered by the slowed distribution of holdings by long-term investors, indicating their confidence in holding onto their assets at current prices. Additionally, both newly emerging whales and long-standing whales have been acquiring Bitcoin around the $60,000 mark, suggesting significant engagement at this price level.

As the flow of funds into Bitcoin ETFs reverses, investors are closely monitoring Bitcoin's trajectory, anticipating further developments that could impact its price dynamics in the coming weeks.