Bitcoin Rebounds on Massive Capital Inflows... Will It Reclaim $70,000?

▲ Bitcoin (BTC), U.S. Dollar (USD)/ChatGPT-generated image

Bitcoin (BTC) is driving a recovery in risk appetite across the broader market as it records large-scale capital inflows into spot ETFs.

According to cryptocurrency-focused outlet FXStreet on February 26 (local time), Bitcoin is maintaining a steady trend in the upper $68,000 range after approximately $507 million in net inflows entered spot ETFs. BlackRock’s IBIT led the inflows with $297 million, while Grayscale’s GBTC supported the uptrend with $102 million. As institutional capital continues to flow in, the likelihood of Bitcoin breaking through the psychological resistance level of $70,000 is increasing.

Ethereum (ETH) is also holding firmly above the $2,000 support level as institutional interest returns. On Wednesday alone, $157 million flowed into Ethereum spot ETFs, a sharp surge compared to $9 million the previous day. Fidelity’s FETH attracted $62 million, leading the rebound, while technical indicators show ETH emerging from oversold territory with strengthening buying momentum.

XRP is continuing its recovery near $1.45, supported by modest inflows into spot ETFs. Technical indicators such as the Moving Average Convergence Divergence (MACD) are signaling bullish momentum, suggesting that downside pressure is gradually easing. XRP’s cumulative ETF inflows have reached $1.24 billion, pushing total assets under management beyond $1 billion. Analysts anticipate further upside if XRP breaks through the $1.54 resistance level.

Investor sentiment across the broader digital asset market is moving out of the fear phase and into stabilization. A supply crunch driven by declining Bitcoin exchange reserves, combined with tangible institutional buying, appears to be calming the downtrend. The Relative Strength Index (RSI) is also trending upward, indicating that market participants are increasingly engaging in dip-buying. Capital inflows through spot ETFs are serving as a key driver strengthening the market’s fundamental resilience.

The stabilization of major assets led by Bitcoin is expected to improve supply-demand dynamics in the altcoin market. Despite ongoing macroeconomic uncertainty, the accelerating institutional adoption of digital assets has reinforced downside support. Investors are closely watching whether Bitcoin can break above $70,000, viewing it as a decisive indicator of a full-fledged rally resumption.

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