Major cryptocurrencies surged on Wednesday evening driven by massive inflows into U.S.-listed spot Bitcoin ETFs during Tuesday’s drop. This indicates that ETF investors were unfazed by the plunge and saw it as an opportunity to buy the dip.

What Happened: The ten new ETFs collectively experienced over $648 million in net inflows, marking the largest daily allocation since their launch on Jan. 11, according to data compiled by BitMEX Research. Notably, the BlackRock iShares Bitcoin ETF (NASDAQ:IBIT) set a new daily record, attracting $788 million in fresh investments and increasing the fund’s holdings by 12,600 BTC.

Bitcoin hit a record high above $69,000 before plunging to around $67,000. Meanwhile, Hut 8, a Bitcoin mining company, has confirmed the permanent closure of its facility in Drumheller, Canada, citing challenging conditions in the mining industry.

Top Gainer (24 Hour)

The global cryptocurrency market cap now stands at $2.51 trillion, showing a 0.49% increase in the past 24 hours.

Stocks surged on Wednesday, signaling a market turnaround after consecutive losses on Wall Street.

The S&P 500 rose by 0.51% to reach 5,104.76, and the Nasdaq Composite saw gains of 0.58% to reach 16,031.54. Meanwhile, the Dow Jones Industrial Average saw an increase of 75.86 points, or 0.2%, closing at 38,661.05.

In his first of two Capitol Hill appearances this week, Federal Reserve Chair Jerome Powell stated in prepared remarks on Wednesday that the central bank is considering the possibility of lowering interest rates this year. However, Powell indicated that the Fed is not currently prepared to immediately reduce the cost of borrowing money.

"We believe that our policy rate is likely at its peak for this tightening cycle," Powell said. "If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year."

Powell said that the central bank requires additional data before considering a rate cut. He is scheduled to testify before the Senate Banking Committee on Thursday.

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Analyst Notes: Cryptocurrency analyst Michael Van de Poppe predicts that Ethereum could be the next in line to potentially test an all-time high. This projection is attributed to the impending EIP-1559 upgrade and the possibility of a Spot ETH ETF approval. 

"Crucial resistance is approaching, but the $BTC pair has barely moved. We’ll likely see more strength coming from this asset."

Pseudonymous analyst, Altcoin Sherpa, warned of volatility in the upcoming hours/days. Despite this, the analyst emphasizes the long-term goal, stating that Bitcoin is projected to surpass 100k during this cycle

"There is going to be a shi*load of volatility here in the coming hours/days. Do not lose sight of the goal, though: Bitcoin is going to go to 100k+ this cycle and these short movements are a blip on the radar. Don’t lose your stack when we’re so close to the finish line."

Santiment, an on-chain analytics firm in a tweet said, "AI and BigData projects have broken out in the midst of traders being seemingly distracted by dipbuy opportunities for Bitcoin and various meme coins. A portfolio filled with the 100 AI crypto assets from our watchlist grew by +30.7% in 24 hours." 

Photo by BBbirdZ on Shutterstock

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