Bitcoin gains 3.1% to $79,739, ETF inflows hit $1.92B

In a note Monday, Fundstrat said the buying after the short squeeze suggests the rally may be more durable than a tactical bounce. The firm pointed to strong inflows into bitcoin and ether ETFs and increased trading volume. Fundstrat also noted activity in the options market, where traders are now paying for exposure to gains further into the future. That contrasts with earlier rebounds, when near-term bets dominated.

BTIG, in a separate note, highlighted that a similar surge in January 2023 initially faded before Bitcoin found support around its 200-day moving average.

Fundstrat also observed that Bitcoin rallied without fresh purchases from Strategy, the largest corporate holder of the cryptocurrency. Strategy has not bought bitcoin for two weeks. If it resumes buying while ETF demand stays strong, that could provide another boost, Fundstrat said.