Key Points:
- Bitcoin held above $80,000, trading around $80,250 after Wednesday’s rally, while U.S. spot Bitcoin ETFs recorded $74.6 million in net inflows.
- Injective gained approximately 6% after Nasdaq approved the listing of Canary Capital’s staked INJ exchange-traded fund, which is expected to trade under the ticker INJC.
- Derivatives data indicated that much of Bitcoin’s rebound was driven by short liquidations rather than substantial new long positioning, leaving questions about the rally’s durability.
Bitcoin maintained its position above $80,000 on Thursday after a broad cryptocurrency recovery lifted prices during the previous session. Renewed inflows into U.S. spot Bitcoin exchange-traded funds and strength in selected altcoins supported market sentiment, while Injective attracted attention following Nasdaq’s approval of a staked INJ ETF listing.
The recovery followed a period of political and macroeconomic uncertainty surrounding the U.S. midterm elections. However, derivatives positioning suggests that the latest advance may reflect the unwinding of bearish bets more than a decisive return of institutional capital.
Bitcoin Holds Above $80,000 as ETF Flows Improve
Bitcoin slipped approximately 0.2% to $80,250 since midnight UTC, remaining above the $80,000 threshold after climbing from around $78,000 on Wednesday. Over 24 hours, BTC gained approximately 2.5%, while Ether advanced around 4% to approximately $2,418.
A notable development came from U.S. spot Bitcoin ETFs, which recorded $74.6 million in net inflows on Wednesday, ending a three-day consecutive outflow streak, according to Farside Investors. The return of positive flows provides a constructive signal after recent withdrawals had raised concerns about institutional demand.
The broader market also benefited from improving macroeconomic sentiment. Oil prices declined approximately 8% during Wednesday’s trading, while U.S. equities advanced following the midterm elections. Brent crude subsequently traded near $95 per barrel.
Nevertheless, the recovery remained exposed to upcoming economic data. Nasdaq-100 futures were down approximately 0.8% early Thursday, ahead of U.S. jobless claims and Friday’s employment report.
Derivatives Data Suggests a Short-Covering Rally
The structure of the rebound offers an important distinction between forced position closures and fresh capital entering the market. Total cryptocurrency futures trading volume increased 15% to $244 billion over 24 hours, while aggregate open interest rose only 1% to approximately $139.9 billion.
Meanwhile, liquidations increased 53% to $715 million, with approximately 65% involving short positions. Bitcoin alone recorded around $267 million in liquidations, approximately 93% of which came from bearish traders.
Bitcoin open interest increased just 0.3% against a price gain of approximately 2.6%. This combination suggests that the move was largely supported by short sellers being forced to close positions rather than a substantial expansion of new leveraged exposure.
Options positioning also shifted. Bitcoin’s one-week implied volatility declined to approximately 33%, while its one-week options skew fell to around 2% from approximately 11% a day earlier, indicating reduced demand for downside protection.
Injective Gains on Canary Capital’s Staked ETF Development
Injective was among the strongest-performing major digital assets, rising approximately 6% since midnight UTC and around 10% over 24 hours. The advance followed Nasdaq’s approval of the listing of Canary Capital’s proposed staked INJ ETF, identified by the ticker INJC, according to an SEC filing.
The development is significant because a staked ETF structure could provide investors with regulated market exposure to INJ while incorporating staking-related features. However, the listing approval should not be confused with evidence of completed trading commencement or confirmed fund performance.
For the broader digital asset industry, the development illustrates continued efforts to bring cryptocurrency exposure into conventional financial products. Investor interest will depend on the final fund structure, trading availability, liquidity, and the treatment of staking-related returns.
Political Uncertainty and Market Rotation Remain Relevant
Not all digital assets participated in the recovery. Official Trump (TRUMP) declined approximately 14% over 24 hours, making it the weakest performer among the top 100 cryptocurrencies on CoinMarketCap. World Liberty Financial’s WLFI token also lost around 4%, with both declines coinciding with the Democrats’ midterm victories.
The CoinMarketCap Fear and Greed Index improved to 42 from 37, returning to neutral territory, while the Altcoin Season Index stood at 49. These readings indicate improving sentiment but do not establish a broad-based shift toward sustained risk appetite.
Looking ahead, Bitcoin’s ability to maintain the $80,000 level will depend partly on whether ETF inflows continue and whether new spot demand replaces the short-covering activity behind Wednesday’s advance. Friday’s U.S. employment report may also influence expectations for monetary policy and broader risk assets. Meanwhile, Injective’s ETF development will remain a focal point as investors assess whether regulated staking products can attract meaningful demand beyond the initial market reaction.
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