Bitcoin Nears $90K As ETF Inflows Surge And Treasuries Trigger Flight To Crypto

Bitcoin is trading 2.72% higher on Tuesday at $89,918, inching closer to the psychological $90,000 mark as investors continue to move away from traditional assets and into crypto amid escalating concerns over U.S. Treasuries and the Federal Reserve's independence. 

The world's largest cryptocurrency is up 5.88% over the last week and 6.61% over the past month.

Bitcoin Emerges as Hedge Against U.S. Treasury Risk

Bitcoin's rally this week is being framed not just as a bullish technical breakout, but as a response to growing turmoil in traditional finance. On Monday, major U.S. indices fell. The S&P 500 SPY dropped 2.36%, the Nasdaq fell 2.55%, and the Dow plunged nearly 1,000 points. Meanwhile, the U.S. dollar index (DXY) slipped to a three-year low of 98.00.

Standard Chartered's Head of Digital Asset Research, Geoff Kendrick, described Bitcoin's price action as a hedge against the risks posed by U.S. Treasuries and systemic uncertainty. "The threat to remove U.S. Federal Reserve Chair Jerome Powell falls into Treasury risk—so the hedge is on," Kendrick told BeInCrypto.

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That hedge is playing out in real time. With President Donald Trump escalating criticism of Powell and floating his potential removal, traders are interpreting the move as a threat to the Fed's credibility and an accelerant for a rate-cut cycle—one that may eventually inject fresh liquidity into risk markets, including crypto.

ETF Inflows Hit Highest Levels Since January

Reinforcing Bitcoin's upside momentum, inflows into U.S. spot Bitcoin ETFs surged to $381.4 million on Monday—the largest daily figure since January 30, according to Farside Investors. ARK 21Shares' ARKB led with $116.13 million in inflows, while Fidelity's FBTC added $87.61 million.

It's a shift after weeks of outflows from crypto investment vehicles. Just last week, U.S.-based crypto products saw $71 million in outflows, even as European and Canadian funds posted positive flows.

Sentiment Shift Suggests Broader Risk Repricing

The spike in ETF flows coincides with a broader improvement in market sentiment. Bitwise's Cryptoasset Sentiment Index flipped to "slightly bullish" in its latest update, with 8 of 15 indicators trending positive. Meanwhile, Cross Asset Risk Appetite (CARA), Bitwise's gauge for traditional finance, ticked up from -0.59 to -0.43, suggesting a modest increase in investor risk appetite.

Bitwise analysts noted that 20% of tracked altcoins outperformed Bitcoin last week, a sign that strength in BTC may soon spill over into broader markets.

From a technical standpoint, Bitcoin has broken out of a tight trading range between $83,000 and $86,000 and is now targeting the $90,000 level. The 200-day moving average is the next key level. A decisive move above that mark could pave the way for a retest of all-time highs.

Institutional voices like Bitfinex suggest the current rally is being driven by macro hedging and renewed interest in Bitcoin as a “digital gold” alternative, according to Decrypt. Gold itself hit a nominal all-time high of $3,494 this week.

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