US-listed spot Bitcoin exchange-traded funds (ETFs) posted their strongest inflows in nearly eight months as $BTC reclaimed the $80,000 level. The funds, which launched in January 2024 after US regulatory approval, hold Bitcoin directly and have become one of the main conduits for institutional and retail exposure to the asset via traditional brokerage accounts.

Bitcoin ETFs recorded $730.9 million in net inflows on Thursday, the largest daily total since Jan. 14, when the funds attracted $843.6 million, according to SoSoValue data. The surge followed inflows of $101.2 million on Wednesday and coincided with Bitcoin recovering $80,000 after trading in a range of roughly $76,000 to $81,000 this week, according to CoinGecko.

Despite the jump in ETF inflows, CryptoQuant remained cautious about Bitcoin's rally, citing weaker spot demand and heavy short covering, with $83,000 emerging as a key bull market threshold.

BlackRock's IBIT draws $454 million in a day

BlackRock's iShares Bitcoin Trust (IBIT), the largest US spot Bitcoin ETF by net assets, led Thursday's buying with $454 million in inflows, accounting for about 62% of the total, according to Farside Investors data. Although overall spot Bitcoin ETF inflows reached their highest level since January, IBIT alone attracted an even larger single-day inflow of $503 million as recently as Aug. 20.

The ARK 21Shares Bitcoin ETF (ARKB), from ARK Invest and 21Shares, followed with $137.7 million, while Fidelity's Wise Origin Bitcoin Fund (FBTC) drew $74.4 million. VanEck's Bitcoin ETF (HODL) and WisdomTree's Bitcoin Fund (BTCW) were the only funds to record outflows on Thursday, at $19.6 million and $5.2 million, respectively.

Bitcoin rally still needs fresh buyers

Bitcoin's recent rally was driven largely by traders closing short positions rather than opening new long positions, indicating limited fresh buying demand, CryptoQuant said in a Thursday report shared with Cointelegraph.

The report noted that Bitcoin holders realized 23,000 BTC in net profits on Aug. 21, the highest daily amount this year, and roughly 110,000 BTC in total since Aug. 19, reflecting substantial profit-taking during the rally.

According to CryptoQuant, Bitcoin's next major test lies around its 365-day moving average, which the firm placed at roughly $82,300. The company said this moving average has historically marked the divide between Bitcoin bull and bear markets, with Bitcoin reaching $81,400 on Aug. 28 before retreating below the threshold.

"A decisive close above $83K would confirm the new bull market," CryptoQuant said, while a rejection could trigger a pullback toward the 200-day moving average near $69,000.