Bitcoin’s ETF inflows are slowing down, raising concerns about institutional interest and the sustainability of its recent rally. After months of steady accumulation, the trend has now reversed, with ETFs seeing net outflows rather than fresh demand.
Institutional Demand Weakens
Bitcoin ETFs played a significant role in fueling BTC’s bullish momentum, with inflows exceeding 18,000 BTC in early November. However, recent data suggests that institutions are stepping back, with net outflows of 1,000 BTC recorded in the latest cycle. This shift in sentiment could signal a cooling phase for Bitcoin, reducing its ability to maintain upward momentum.
Market Impact and Price Resistance
Bitcoin is currently trading at $97,039, struggling to reclaim key moving averages. The 50-day moving average at $98,512 and the 200-day moving average at $97,764 act as strong resistance levels. Without renewed institutional demand, Bitcoin may struggle to break past these thresholds, potentially leading to further corrections.
Additionally, trading volume remains low, reflecting hesitation among buyers. If ETF outflows persist, Bitcoin could face increased volatility, testing lower support zones.
Will Bitcoin Regain Strength?
The future of Bitcoin’s price action largely depends on ETF demand. A return of institutional buyers could reignite bullish momentum, while continued outflows might trigger further price dips. For now, investors should closely monitor ETF trends as a key market indicator.
This article does not constitute investment advice. Always conduct your own research before making financial decisions.