After five weeks marked by massive capital outflows, Bitcoin (BTC) investment funds closed last week with positive inflows of $644 million.
Digital asset investment products, which seemed caught in a downward spiral, have recorded a reversal that breaks the recent trend.
Capital inflows and outflows from digital asset investment funds. Source: CoinShares.
According to data from investment firm CoinShares, total assets under management grew 6.3% since their low point on March 10. Capital inflows were recorded every day last week, ending a streak of 17 consecutive days of outflows.
This move signals a shift in investor sentiment toward cryptocurrencies, with Bitcoin leading the rally by attracting $724 million.
In contrast, short-term bitcoin investment products saw outflows for the third consecutive week, totaling $7.1 million.
The phenomenon wasn't limited to a single market. The United States led the flows with $632 million, but Switzerland, Germany, and Hong Kong also contributed inflows of $15.9 million, $13.9 million, and $1.2 million, respectively.
Meanwhile, the altcoin picture was mixed. Ethereum's Ether (ETH) lost $86 million, but Solana (SOL) saw $6.4 million in revenue.
Macroeconomic expectations in focus
What drove this shift points to global economic signals. The next round of tariffs announced by US President Donald Trump, scheduled for April 2, appears to be less severe than anticipated.
Following his inauguration, the "tariff war" against Mexico, Canada, and China had generated trade tensions that hit Bitcoin and other financial assets. Markets, fearing an escalation, reacted with drops in cryptocurrency and stock prices. However, since last Friday, optimism began to gain momentum. Bitcoin climbed to $88,000 over the weekend.
Volatility in sight for Bitcoin
Despite the relief, the calm could be fleeting. There are more than seven days until April 2, and positive expectations could fade if the rumors change direction.
If the optimistic projections don't hold up, the market could face a steep decline, and Bitcoin could face significant corrections. Therefore, a week of intense movements is anticipated, with the price of the digital currency fluctuating depending on the news that dominates at the moment.
On the other hand, the consensus among experts suggests that investors should keep their eyes on the horizon. Trading specialist Iván Paz Chain projects that Bitcoin could reach $140,000 this year. Analysts at Bernstein raise their bets to $200,000, while Strategy's Michael Saylor estimates a ceiling of $180,000 before a major correction. Although figures vary, they agree that Bitcoin's bullish cycle still has some way to go.
Beyond the swing: long-term value
Bitcoin isn't just a reflection of the current turmoil. Its design positions it as a long-term bet. With a limited supply of 21 million units, its scarcity makes it an attractive store of value. Added to this is its censorship resistance and non-confiscable nature, qualities that shine in contexts of economic crisis or state intervention.
It also offers discretion to those seeking privacy in their transactions, provided they take the necessary precautions.
Between the hope of a sustained rally and the risk of a new storm, Bitcoin continues to demonstrate that its story is far from completely over.
