BBitcoin climbed more than 7% in 24 hours, trading near $71,400 as U.S.-listed spot exchange-traded funds absorbed fresh capital. The rally comes despite escalating geopolitical tensions and fading expectations for near-term Federal Reserve rate cuts.
Data shows bitcoin leading market gains, with ether also advancing above $2,050. According to SoSoValue, U.S. spot bitcoin ETFs recorded roughly $225 million in net inflows on March 3, following about $458 million the prior day, with no funds posting net outflows during the March 2 session. Spot ether ETFs were less consistent, logging $38.7 million in net inflows on March 2 before flipping to $10.9 million in net outflows on March 3.
Are ETF Flows Driving The Break Higher?
The inflow streak follows weeks of uneven price action that left digital assets struggling to maintain upside momentum. CoinShares reported $1 billion in net weekly inflows into digital asset investment products, snapping a five-week outflow run. James Butterfill, head of research at CoinShares, described the shift as investors moving from de-risking into “where’s the entry?” mode even as macro risks persist.
Derivatives positioning suggests leverage is also returning. Glassnode said perpetual open interest posted its largest daily percentage increase since July 2025 as bitcoin tested $69,400, a level it identified as a repeated rejection zone during prior bouts of profit-taking. Yet Bitfinex analysts cautioned that ETF share creation does not always translate immediately into spot market buying, citing potential timing gaps within regulated products.
Geopolitics remains the dominant macro variable. QCP Capital said in a March 4 note that bitcoin’s relative strength has stood out as tensions surrounding the U.S.-Israel conflict with Iran tightened broader risk conditions, while warning that volatility could intensify if disruptions around the Strait of Hormuz deepen. Can bitcoin maintain momentum if cross-asset stress accelerates?
The next signal will likely come from sustained ETF subscription data and funding rates in perpetual futures, which together will indicate whether this move reflects durable allocation or short-term leverage expansion.GF
