BTC Touches $50k, ETF Inflows Accelerate
Monday morning picked up right where yesterday left off, with BTC surging toward $50k, momentarily touching the key level across several exchanges. The rally appears to be driven by spot market demand, as evidenced by a significant spike in spot volume while funding rates remain muted (see chart below). A substantial portion of this volume is likely entering the market via spot ETFs chasing the positive weekend price action. Concurrently, ETH is making strides toward recouping the $2600 level, and Bitcoin’s Layer 2 solution, STX 12.79% , is experiencing a massive rally alongside BTC. The rally is broadening out, with ETH Layer 2 projects like ARB 0.05% , OP -2.10% , and IMX witnessing over a 5% increase. This surge occurs despite rising rates, the DXY moving higher, and gold declining in response to an increase in real rates. Equity indexes continue to rally, posting gains across all sectors thus far today. This is a crucial macro week, with a CPI release tomorrow and PPI and Consumer Sentiment on Friday. Additionally, Coinbase is slated to report earnings this week, marking its first earnings announcement post-ETF launch.