Bitcoin ETFs have attracted $996 million in net inflows over the past week, marking the highest volume since mid-January. This surge follows a temporary de-escalation in the U.S.-Iran conflict, prompting traders to favor risk assets like Bitcoin.
Market sentiment suggests a potential shift, with a prediction market contract for Bitcoin reaching an all-time high by December 31 now at 17.5% probability, up from 14% a week prior. While shorter-dated contracts show little change, the significant jump between September 30 and December 31 prediction markets indicates an expectation of major catalysts in the fourth quarter.
Despite growing institutional interest signaled by ETF inflows, traders remain cautious due to the ongoing geopolitical situation. Watch for developments in the U.S.-Iran relations and Federal Reserve communications on interest rates, as these factors could significantly impact Bitcoin's trajectory.