Strategy surges on Bitcoin rally, nears 100-Day moving average as options highlight $123-$130 range

Bitcoin exchange-traded funds (ETFs) in the United States attracted their highest weekly inflows in 10 months last week, following a significant price surge. The US-listed spot Bitcoin ETFs received a combined $1.92 billion in net inflows, according to SoSoValue data, marking the largest weekly total since early October last year. The funds also recorded their strongest single-day inflow in over three months on August 20, when investors deposited $606.3 million.

The surge came as Bitcoin increased around 23% last week, its biggest weekly gain in over three years. Bitcoin is currently trading at approximately $79,473, up around 3% over the past day. This 20% weekly move was further fueled by a short squeeze, a drop in long-term Treasury yields after the U.S. Treasury increased its long-dated bond buybacks, and the SEC's proposed crypto rules and President Trump's renewed push for the CLARITY Act.

However, Taran Dhillon, head of digital assets at Kula, stated that strong ETF flows will depend on the macro backdrop. Dhillon noted that Bitcoin remains highly sensitive to changes in yields, dollar strength, macroeconomic uncertainties, and Federal Reserve policy expectations. Dhillon warned that ETF demand could rapidly turn if rate-cut expectations weaken.

Markus Levin, co-founder of XYO, expects spot Bitcoin ETF flows to stay positive this week, but with potentially more volatility than the previous week. Levin believes that broader liquidity conditions and investors' continued perception of current levels as an attractive entry point will be crucial factors.