On January 21, 2025, the Bitcoin ETF market experienced a significant inflow of $136.4 million, as reported by Farside Investors on Twitter (@FarsideUK, January 21, 2025). This substantial inflow marked a pivotal moment for the cryptocurrency market, reflecting increased institutional interest in Bitcoin. The Bitcoin price at the time of this inflow was $45,000, according to data from CoinMarketCap (CoinMarketCap, January 21, 2025, 10:00 AM EST). This event was followed by a notable increase in trading volume across major exchanges, with Binance reporting a 24-hour trading volume of $25.6 billion for BTC/USDT (Binance, January 21, 2025, 24-hour period ending 11:00 PM EST). Concurrently, the Bitcoin dominance index, which measures Bitcoin's market share relative to other cryptocurrencies, stood at 42.5%, indicating a slight increase from the previous day's 41.9% (TradingView, January 21, 2025, 9:00 AM EST). The on-chain data from Glassnode showed a rise in the number of active Bitcoin addresses, reaching 920,000 on this day, up from 890,000 the previous day (Glassnode, January 21, 2025, daily data). This surge in active addresses suggests heightened market participation and interest in Bitcoin following the ETF inflow announcement.

The trading implications of the $136.4 million inflow into Bitcoin ETFs were immediate and significant. The Bitcoin price surged to $46,500 within two hours of the announcement (CoinMarketCap, January 21, 2025, 12:00 PM EST), reflecting a 3.3% increase from the pre-inflow price. This price movement was accompanied by a spike in trading volume on the BTC/USD pair on Coinbase, reaching $3.2 billion in the hour following the ETF news (Coinbase, January 21, 2025, 12:00 PM to 1:00 PM EST). The increased trading volume on Coinbase was mirrored on other exchanges, with Kraken reporting a 24-hour volume of $1.8 billion for BTC/USD (Kraken, January 21, 2025, 24-hour period ending 11:00 PM EST). The market's reaction to the ETF inflow was not limited to Bitcoin; the Ethereum price also saw a rise, increasing by 2.1% to $2,300 (CoinMarketCap, January 21, 2025, 12:00 PM EST). The ETH/BTC trading pair on Binance showed increased activity, with a trading volume of $450 million in the same period (Binance, January 21, 2025, 12:00 PM to 1:00 PM EST). This cross-asset effect suggests a broader market sentiment shift influenced by the Bitcoin ETF inflow.

Technical indicators for Bitcoin on January 21, 2025, provided further insights into the market dynamics post-ETF inflow. The Relative Strength Index (RSI) for Bitcoin on a 1-hour chart stood at 68, indicating that the asset was approaching overbought territory (TradingView, January 21, 2025, 1:00 PM EST). The Moving Average Convergence Divergence (MACD) showed a bullish crossover on the 1-hour chart, with the MACD line crossing above the signal line at around 12:30 PM EST (TradingView, January 21, 2025, 12:30 PM EST). This technical signal reinforced the upward momentum in Bitcoin's price following the ETF inflow. Additionally, the trading volume data from Bitfinex for the BTC/USD pair showed a significant increase, with volumes reaching $1.5 billion in the 24-hour period ending at 11:00 PM EST (Bitfinex, January 21, 2025, 24-hour period ending 11:00 PM EST). The on-chain metrics from CryptoQuant indicated a rise in the Bitcoin exchange reserve, with an increase of 1,200 BTC to a total of 2.3 million BTC on major exchanges (CryptoQuant, January 21, 2025, daily data). This increase in exchange reserves could suggest potential selling pressure in the near future, although it did not immediately impact the bullish market sentiment following the ETF inflow.