Question #93 ·
What impact did nearly $100 billion in inflows to BlackRock’s Bitcoin ETF have on Bitcoin’s recovery?
- It decreased Bitcoin liquidity and caused a supply shortage that pushed prices down
- It led to gold selloffs as investors moved funds from metals to Bitcoin
- It boosted market confidence and helped drive Bitcoin price recovery by increasing demand Right answer
Why is this the correct answer?
This is correct because when nearly $100 billion flowed into BlackRock’s Bitcoin ETF, it signaled strong institutional interest. Large inflows into a regulated product reassure investors that big players are backing Bitcoin. That influx of capital directly increased buying pressure, which helped lift Bitcoin’s price off lows and aided its recovery in the days following the tariff news. Beginners should recognize that institutional ETF inflows can be a powerful driver of price rebounds.