February 11, 2025
Bitcoin (BTC) price has continued to trade in the $90,000 to $105,000 trading range it has sustained since early December.
Over the past week, the cryptocurrency market appeared to disregard concerns over potential tariff threats from President Donald Trump, as well as a series of favorable regulatory developments within the United States.
Despite the broader market's flat performance week-over-week, new investments continued to flow into the digital asset space. This trend was evidenced by the inflow of dollars into stablecoins and investment products, including U.S. exchange-traded funds (ETFs).
The past week saw crypto investment products attract $1.3 billion in inflows. Notably, Bitcoin-focused ETFs experienced net inflows amounting to $200 million.
The stablecoin market also demonstrated robust growth, with the total supply reaching $205 billion. This surge was driven by $5 billion worth of stablecoins being minted over the course of the last week.
The increasing supply of stablecoins suggests a growing use of these digital assets, which are often pegged to fiat currencies like the U.S. dollar and serve as a bridge between traditional finance and the cryptocurrency market.
Furthermore, data on BTC funding rates, which are a measure of the cost to fund long positions in the perpetual futures market, indicated a rate of just 6%. This relatively low rate suggests that there is currently a modest demand for leverage among crypto traders, signaling a cautious approach to market engagement.
The continued inflows into Bitcoin ETFs and the expansion of the stablecoin supply point to sustained investor interest in digital assets, even as the market displays a measured response to external economic factors and regulatory changes.
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