In the previous week, US-based spot Bitcoin exchange-traded funds (ETFs) saw an increase in net inflows exceeding $600 million. This reflects a positive trend of capital flowing into digital asset products. However, it was noted as the lowest weekly inflow in the past month, suggesting that investors may be exercising caution or taking profits at higher levels.

The slowing down of ETF inflows can be attributed to Bitcoin's price consolidating during the reviewed five-day period. BTC traded sideways within the $102,711 to $104,971 range, causing some investors to approach the market more cautiously, leading to a reduction in capital inflows into BTC ETFs.

Despite the cautious approach, bullish momentum remains strong in the BTC market, with the cryptocurrency briefly reaching a three-month high of $107,108 before correcting to $104,956. This positive sentiment is also evident in the rise of BTC futures open interest by 7% to $70.03 billion, indicating new investments entering the market.

The surge in open interest along with an increase in demand for call options compared to put options suggests a growing bullish sentiment among investors. This optimistic market outlook, coupled with the rising derivatives activity and BTC reclaiming higher price levels, could potentially drive the cryptocurrency to achieve new highs in the short term.