Bitcoin Swings Around $68K on ETF Flows
Bitcoin experienced significant volatility, first dropping below $67,000 before rebounding 5% to trade near $68,000. The recovery was fueled by a surge in spot Bitcoin ETF inflows, which hit a three-week high and totaled $258M. This institutional buying occurred even as other large investors reportedly sold 25,000 BTC in Q4.
The recent surge in ETF demand marked a significant reversal, snapping a five-week streak of net outflows that had drained approximately $3.8 billion from the sector. This was the first potential week of net positive inflows after a prolonged period of institutional selling and profit-taking that began in early 2026. BlackRock's iShares Bitcoin Trust (IBIT) was the primary driver, single-handedly attracting $297.4 million of the new capital. Other major funds like Fidelity's FBTC and Bitwise's BITB also saw substantial inflows of $30.1 million and $39.4 million, respectively. In a notable shift, Grayscale's Bitcoin Trust (GBTC), which has experienced cumulative outflows of roughly $25.9 billion since its conversion to an ETF, recorded a rare session of net inflows totaling $102.5 million. This spot-driven rally was accompanied by a reset in the derivatives market, where aggregated open interest has fallen. This decline suggests that excessive leverage has been flushed from the system, potentially creating a more stable foundation for the current price levels. The rebound comes after a period of significant volatility, which analysts at VanEck described as an "orderly deleveraging" rather than a chaotic crash. In early February 2026, Bitcoin's price had tested levels near $61,000 after falling from an all-time high of approximately $126,198 in October 2025. Traders view the successful reclaim of the $68,000 mark as a critical psychological and technical level. Analysts suggest that stabilizing above this price could be key for Bitcoin to regain its bullish momentum for the remainder of the first quarter. Despite the sharp price swings, Bitcoin's rolling one-year volatility has been trending downwards, measuring 36.1% as of January 30, 2026. This figure was lower than the volatility of some major tech stocks like Nvidia, which stood at 43.0%, indicating a potential maturation of the asset class. Looking ahead, some industry leaders remain highly optimistic. Blockstream CEO Adam Back, a pioneer in cryptography, has reiterated his vision of Bitcoin reaching $100,000 by the end of 2026, driven by sustained institutional demand.
