Is Bitcoin Rally Over Now As BTC Inflows Slow Down?

Monicah W

Is Bitcoin Rally Over Now As BTC Inflows Slow Down?

Investors appear to be growing cautious about the Bitcoin rally, with the BTC inflow slowing down. The recent outflow in the US Spot Bitcoin ETF indicates a waning institutional interest, with many seeing it as a potential threat to the ongoing rally.

Will Bitcoin Rally Continue Amid Slowing BTC Inflow?

The US Bitcoin ETF inflow has slowed from its robust performance over the last eight days, Farside Investors data showed. From April 17-29, the BTC inflow totaled $3.93 billion, which has helped in a strong rally for the flagship crypto’s price, sending it to over $95K.

BlackRock BTC ETF Reigns Supreme

However, on April 30, the investment instruments recorded a combined outflow of $56.3 million. It’s worth noting that BlackRock IBIT has still recorded an inflow of $267 million on Thursday. Also, IBIT has consistently recorded inflows since April 14.

Meanwhile, the recent combined outflow indicates that the institutional interest is fading, which might add pressure on the crypto’s price. Besides, many are also questioning the potential of the Bitcoin rally ahead.

Bitcoin Rally To Sustain? Here’s What To Watch Next

Despite the slowdown in BTC inflow on Thursday, it appears that investors are still putting their bets on the asset. It also indicates that the traders are confident in the long-term potential of Bitcoin, betting on a continuing rally.

Notably, BTC price today was up over 1.3% and traded over $96,000 during writing. However, in the early US hours, the price dropped to $93,796 on Friday. Besides, the future open interest of the asset also rose by over 5%, reflecting the strong confidence of the traders.

What Lies Ahead?

According to CryptoQuant analyst Axel Adler Jr, Bitcoin’s on-chain momentum is gaining steam, with three possible scenarios shaping its next rally. The optimistic outlook predicts a price surge to $150-175K if the Ratio breaks above 1.0.

A base case scenario suggests consolidation between $90-110K, while a pessimistic outlook warns of a correction to $70-85K. With the Ratio currently at 0.8, the next six months will be crucial in determining Bitcoin’s trajectory.

Bitcoin price analysis
Source: CryptoQuant, X

Meanwhile, a recent BTC price prediction also showed that the crypto is likely to soar past the $100K mark this month. Considering all these, it appears that the Bitcoin rally may continue in the coming days, especially if the ETF inflow recovers to provide more support to the bullish momentum.

The post Is Bitcoin Rally Over Now As BTC Inflows Slow Down? appeared first on CoinGape.

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White House Advisor Bo Hines Pushes for US Bitcoin Reserve Funded by Tariff Revenues

According to Bo Hines, the executive director of the Presidential Council of Advisers on Digital Assets, the Trump administration could consider using tariff revenues to build a national Bitcoin reserve.

It marks a notable shift, given recent indications that revenue generated from gold sales would help fund the Bitcoin reserve.

Trump Tariff Revenues To Fund US Bitcoin Reserve

Bo Hines explained the possibility during recent interviews. He cited the need for the US to act swiftly amid global competition for Bitcoin accumulation.

Speaking to Thinking Crypto on Tuesday, Hines emphasized that the US must compete globally in Bitcoin. He highlighted the creation of a Strategic Bitcoin Reserve (SBR) through budget-neutral means. This, he said, includes novel funding mechanisms such as tariff revenues.

“SBR recognizes the value of what Bitcoin is and how it can be harnessed for the American people. There is a finite number of Bitcoin and I think there will end up being a race to accumulate,” Hines stated.

He reiterated this in an interview with Anthony Pompliano, the founder and CEO of Professional Capital Management. Bo Hines discussed the re-evaluation of tariffs, Bitcoin, and gold during the discussion. He labeled them as key components of the administration’s macroeconomic strategy.

“The strategic reserve is just the beginning. We’re thinking long-term about what assets can empower the American people and insulate us from global shocks,” Hines told Pompliano.

This plan is different from what Republican Senator Cynthia Lummis of Wyoming proposed. BeInCrypto reported that she introduced legislation to increase the government’s Bitcoin holdings by selling a portion of the Federal Reserve’s gold. 

“We will convert excess reserves at our 12 Federal Reserve banks into bitcoin over five years. We have the money now,” said Senator Lummis back in July at the Bitcoin 2024 Conference.

The notion of using tariff revenue to buy Bitcoin is novel. However, such a move could redefine the role of digital assets in the US economic strategy. It reflects a broader ideological pivot, treating digital assets as more than speculative instruments but as national economic tools.

Crypto advocates responded enthusiastically. Influencer Crypto Rover called the tariff-based Bitcoin acquisition plan “mega bullish,” reflecting wider market sentiment.  

However, some experts caution that the policy may backfire. Charles Hoskinson, founder of Cardano, questioned the effectiveness of tariffs, warning that future government-imposed taxes on crypto will be ineffective.

Meanwhile, others warn that Trump’s aggressive tariff stance could undermine US Bitcoin mining dominance. Hardware costs and international trade barriers could harm domestic miners, especially if Chinese-made mining equipment is further taxed or restricted.

Despite these complexities, the administration appears undeterred. Hines also hinted at integrating stablecoin legislation and blockchain technology within banking infrastructure. He said this would bolster law enforcement capabilities in crypto and signal a multi-pronged strategy.

Hines’ comments come amid broader financial shifts. Reports suggest the Trump administration is considering replacing Federal Reserve Chair Jerome Powell.

As inflation pressures mount and trade tensions with China escalate, speculation is that a more crypto-friendly Fed chair could align monetary policy with the administration’s digital asset goals.

With geopolitical tensions rising and central banks racing to define their digital currency strategies, the US appears to be moving toward a more assertive position.

Bitcoin (BTC) Price Performance
Bitcoin (BTC) Price Performance. Source: BeInCrypto

BeInCrypto data shows Bitcoin was trading for $85,465 as of this writing. This represents a modest 1.09% surge in the last 24 hours.

The post White House Advisor Bo Hines Pushes for US Bitcoin Reserve Funded by Tariff Revenues appeared first on BeInCrypto.

Breaking: OCC Clears Federal Banks to Engage In Crypto Activities

OCC Clears Federal Banks to Engage In Crypto Activities

The Office of the Comptroller of the Currency (OCC) has clarified that Federal Banks are now permitted to carry out “certain cryptocurrency activities.” Industry leaders have described this as the biggest news of the week, and the OCC now confirms that the war on crypto is officially over.

The OCC, Federal Banks, and Crypto

On March 7, the OCC published Interpretive Letter 1183, which clarified banks’ participation in crypto-asset custody. Federal Banks can also participate in certain stablecoin activities to reaffirm their role in the payment sector.

In addition to these two, the OCC said banks may engage in some Decentralized Finance (DeFi) activities. These include taking up an independent role in node verification for blockchain protocols.

In addition to these allowances, the Currency Comptroller also rolled back the need for licenses by banks before participating in these DeFi activities. Ultimately, the OCC clarified that banks may also pursue these crypto activities without proof that they have “adequate controls in place before they can engage in these cryptocurrency activities.”

As part of its broad pivot in digital asset regulation, the OCC said it has withdrawn “its participation in the joint statement on crypto-asset risks to banking organizations and the joint statement on liquidity risks to banking organizations resulting from crypto-asset market vulnerabilities.”

End To Operation Chokepoint 2.0

Unlike the Federal Deposit Insurance Commission (FDIC), Coinbase was involved in Operation Chokepoint 2.0, while the OCC was more conservative. The current Interpretive Letter confirms that Operation Chokepoint 2.0 has ended.

During the Presidential Campaign last year, President Donald Trump promised to end all war on crypto. With banks now free to engage in core crypto activities, the doors to more mainstream adoption are opened.

The White House Crypto Summit, held on March 7, also underscores the urgency of digital asset regulation. During the Summit, President Trump promised to have key crypto bills signed by August this year.

Federal Banks and Crypto Competition

While allowances for banks are welcome in the industry, some leaders disagree on the grand governmental involvement. With billions in Assets Under Management (AUM), critics believe mainstream banks may bring unhealthy competition in the market.

Already, top banks are buying Bitcoin through ETF products, which they may now do directly through the OCC directive. Solana Founder Anatoly Yakovenko believes government involvement can alter the decentralization tenet of the broader crypto industry.

The OCC Crypto Summit update has not changed the sentiment in the broader market. Following the summit, Bitcoin dropped 4.06% to $86,600, dragging altcoins along.

The post Breaking: OCC Clears Federal Banks to Engage In Crypto Activities appeared first on CoinGape.

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