(Sept 21): US spot bitcoin exchange-traded funds recorded chunky inflows at the end of last week, fully reversing earlier outflows and helping to drive the original cryptocurrency back above US$81,000 (RM330,285.60) for the first time in a fortnight.

The ETFs attracted US$593 million over Thursday and Friday, counterbalancing heavy outflows on the two days prior to a net increase of US$6 million for the week. Bitcoin charged more than 6% higher on Friday, a gain it has since held onto, inching to as high as US$82,078 on Monday in Singapore.

The change in sentiment came at the end of a bruising week for digital assets that saw the failure of a landmark US crypto bill and the Federal Reserve’s first interest-rate increase in more than three years. A green light on Thursday from the Securities and Exchange Commission for digital versions of securities to start trading in the US helped to brighten the mood. 

If bitcoin surpasses the US$82,266 it reached on Sept 4, it will be at a four-month high. But traders are not convinced the momentum can last given the difficult macroeconomic headwinds, with crude oil still above US$100 a barrel and US Treasury yields elevated.

“For this week, there aren’t any big catalysts to watch out for per se but any hawkish or dovish remarks by Fed officials could impact the market,” said Jeff Mei, chief operating officer of BTSE.

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