Bitcoin Holds Near $110K as ETFs See 30 Days of Inflows, Signaling Strong Institutional Confidence Amid Tech Market Outflows.

Bitcoin has recovered from a weekend drop, holding near $110K. This strength is backed by 30 straight days of net inflows into spot ETFs like BlackRock's IBIT.

Bitcoin (BTC) is holding above $110,000 as new data shows that Bitcoin ETFs have seen 30 days of net inflows, a testament to persistent institutional interest.

This is in stark contrast to the tech market, which is experiencing significant outflows, especially from leveraged plays like the TQQQ.

As traders await this Friday’s critical Core PCE inflation figures, QCP highlights the key factors converging to create a widening divergence between the crypto and tech domains.

Tech Suffers Outflows As PCE Looms

The latest data from QCP Capital reveals that some investors are rotating out of expensive tech stocks and into crypto. This shift in sentiment is being driven by several factors.

"We are also seeing a divergence in terms of macro resilience, with crypto handling the recent shocks better than in previous cycles, thanks to the maturity of the market and the availability of sophisticated hedging instruments," explained QCP.

Furthermore, crypto is less affected by political events, such as Trump’s sudden announcement of tariffs on European goods, which are putting additional strain on the equity market.

"Bitcoin, being less reliant on government policy and physical supply chains, is able to remain unperturbed by such events," noted QCP.

This Friday's reading of the Core PCE price index could have major implications for both tech and crypto.

If inflation comes in hotter than anticipated, it could delay any potential Fed easing and inflict further pain on the tech sector.

"Finally, we also highlight the massive European port strikes, which are pushing up shipping costs globally and could have a significant impact on tech firms," added QCP.

Such delays would exert more pressure on the sector, while crypto, in its digital and decentralized form, remains unaffected.

"If inflation proves to be sticky, we may also see BTC gaining interest as a hedge against the same."