Bitcoin Sustains $80,000 as Institutional Demand Surges

Bitcoin maintains its position above $80,000 following an $870 million institutional surge into US spot ETFs, while Zcash leads altcoin gains.

The recent market rally gained fresh momentum from a sharp recovery in institutional demand, with U.S. spot BTC and ETH ETFs attracting a combined total of over $870 million during the September 3 session alone.

Bitcoin Holds Firm Above $80,000

At the time of writing, the leading cryptocurrency is trading at $80,849, marking a nearly 4% increase over the last 24 hours and a 1.3% gain for the week. Its market capitalization currently stands at approximately $1.62 trillion. Ethereum is showing even stronger performance, with a daily rise of 4.7% bringing its price to $2,513.

The broader market is also trending upward. XRP climbed 5.4% to $1.44, Hyperliquid rose 4.8% to $85.99, and Dogecoin increased by 4.7% to $0.087. Solana is up roughly 3.1%, trading at $103.81.

The most significant move among major tokens comes from Zcash. ZEC surged 16.7% within 24 hours to approximately $968, bringing its weekly gains to over 22%.

Bitcoin ETFs Record Over $700 Million in Inflows

A more substantial market signal is emerging from U.S. ETF flows. According to data from FarSide Investors, spot Bitcoin funds attracted a net $730.8 million on September 3, a significant jump from the $101.1 million seen the previous day and a reversal from the $236.5 million outflow on September 1.

Inflows were concentrated in several major products:

• BlackRock’s IBIT: +$454 million
• ARKB: +$137.7 million
• Fidelity’s FBTC: +$74.4 million
• Grayscale BTC: +$48.8 million
• BITB: +$24.8 million
• VanEck’s HODL: -$19.6 million

BlackRock’s IBIT alone accounted for more than 60% of the net daily inflows. Cumulative net flows into U.S. Bitcoin ETFs have now reached approximately $55.5 billion, per Farside Investors.

Ethereum Attracts Capital Once Again

Demand is also returning to Ethereum funds. Following a net outflow of $48.2 million on September 2, the subsequent session brought in $141.4 million in new capital.

BlackRock’s ETHA attracted $72.1 million, while Fidelity’s FETH added $65.1 million. QETH recorded an additional $5.4 million. These inflows were partially offset by a $6.1 million outflow from Grayscale’s ETHE.

Solana ETFs also returned to positive territory, albeit on a much smaller scale. Net inflows reached $6.4 million, following a $6.1 million outflow the day before. Of this, $4.4 million went to GSOL and $2 million to BSOL.

XRP funds added another $6.14 million, with Franklin’s XRPZ attracting roughly $3.19 million and Bitwise’s product seeing about $2.95 million. Cumulative net inflows for U.S. spot XRP ETFs now total approximately $1.68 billion.

According to the provided data, Hyperliquid ETFs saw no net flow for September 3.

Short Positions Hit Hard by the Rally

The aggressive upward movement forced many bearish traders to exit their positions. Total crypto liquidations reached roughly $676.3 million, consisting of approximately $416.5 million in short positions and $259.8 million in longs.

Meanwhile, derivatives trading volume surged by over 26% to approximately $973.9 billion, even as open interest dipped slightly by nearly 1% to $445.9 billion.

Market sentiment has turned distinctly optimistic. The Fear and Greed Index currently sits at 77 points, while the total crypto market capitalization has reached approximately $2.71 trillion.

The next test for the market will come from the macroeconomic front. Investors are awaiting the U.S. employment report after comments from Federal Reserve Governor Christopher Waller eased fears of another interest rate hike in September. Reduced expectations for further tightening have already supported risk assets and pushed U.S. bond yields lower.

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