Nearly $1 billion in bitcoin ETF inflows power bull case as Kelp hack fuels DeFi jitters

Market dynamics continue to paint a bullish picture for bitcoin BTC$75,232.74 even as Iran-related developments and DeFi hacks dominate headlines.

U.S.-listed spot ETFs pulled in $663 million on Friday, the most since Jan. 15. Total inflows reached $996 million last week, up from $786 million the week prior, according to data source SoSoValue. This points to strong institutional interest in the largest cryptocurrency.

For a meaningful price rally to emerge, it's a trend that needs to be sustained.

“ETF flow regimes provide a secondary read: Sustained inflows signal structural demand, while intermittent flows indicate tactical positioning, with consistency mattering more than magnitude,” said Timothy Misir, head of research at BRN, in an email.

Bitcoin is trading just above $75,000 after hitting highs above $78,000 on Friday, according to CoinDesk data. The prices has largely held steady over the past 24 hours. Similar patterns are evident in ether (ETH), XRP (XRP), Solana (SOL) and other major tokens.

DeFi platform Aave's AAVE token has dropped 1% to $90 as the protocol faces collateral damage from the weekend hack of KelpDAO. The DeFi dominance rate, which measures the share of DeFi coins in the total crypto market value, has held flat at around 3%.

“The pressure on the leading cryptocurrency is linked to negative reactions in stock markets to news about Iran, which has reduced risk appetite. BTC has lagged significantly behind equities in recent days, building potential but not yet moving to realize it,” Alex Kuptsikevich, the chief market analyst at FxPro, said in an email.

According to the latest reports, the U.S. attacked and seized an Iranian cargo ship attempting to bypass restrictions on Iran’s ports.

Meanwhile, traders are actively building short positions, betting against a breakout. This could fuel a “short squeeze” if prices hold steady, forcing traders to cover bearish bets and potentially pushing spot prices higher. Stay alert!

Read more: For analysis of today's activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead."

What’s trending

• The $292 million Kelp exploit: how it happened, and what it means for DeFi (CoinDesk): Aave saw about a $6.6 billion drop in total value locked on the protocol as users yanked assets following the incident, raising “bank run” concerns. The token linked with the protocol fell about 15%.