HTX analyst says spot buying entered BTC rebound this week

Spot buying demand has been flowing into Bitcoin’s recent rebound, and whether the rally extends will depend on spot ETF flows and market leverage levels, HTX chief analyst Cloud said. Cloud said U.S. spot Bitcoin ETFs saw about $1 billion in net inflows on Sept. 21, citing local time, while roughly $650 million in short positions were liquidated over 24 hours. Falling oil prices also helped ease inflation concerns and supported gains, Cloud said. If last week’s rebound was driven mainly by passive buying tied to short liquidations, this week has seen continued spot buying, according to the analyst. Cloud added that sustained ETF inflows and restraint in leverage expansion will be key to extending the uptrend, while caution is still needed over near-term volatility as market sentiment has entered an extreme greed zone.