3 Minutes
ETF outflows put crucial Bitcoin support under pressure
Analysts at Bitfinex warn that fading institutional interest in spot Bitcoin ETFs is increasing the risk that Bitcoin could lose a critical support zone between $107,000 and $108,000. Without sustained inflows from institutional investors, the market may face what the analysts call “demand-side fragility,” which could accelerate a longer consolidation phase for BTC.
Between Oct. 13 and Oct. 17, U.S.-listed spot Bitcoin ETFs recorded roughly $1.23 billion in net outflows, according to Farside — a trend Bitfinex says highlights the absence of meaningful dip-buying by large institutions following recent macro headlines and market volatility.
Recent flows and price action
This week has shown mixed ETF flows: two outflow days and one strong inflow day that left overall ETF flows modestly positive at about $335.4 million so far. Despite that, Bitcoin retraced from an intraday peak above $113,000 back to the $108,000 area and was trading around $108,864 at the time of reporting, according to CoinMarketCap.
Bitcoin is down 3.36% over the past 30 days
Bitfinex analysts caution that if ETF inflows fail to recover meaningfully in the coming weeks, the lack of institutional accumulation — historically a major driver of Bitcoin rallies — could leave the market vulnerable to extended sideways action or deeper pullbacks.
Implications for traders and investors
For traders, a break below the $107K–$108K support range would be a technical warning sign that could invite more selling pressure or extended consolidation. For long-term investors and institutions, monitoring net ETF flows and macro catalysts will remain essential to assess whether demand is returning or weakening.
Market sentiment is mixed. Some bullish voices, including BitMEX co-founder Arthur Hayes and Tom Lee of Fundstrat/BitMine, still project ambitious year-end targets for Bitcoin. Others, like Galaxy Digital CEO Mike Novogratz, have urged caution — saying a number of unlikely events would have to occur for BTC to reach the most optimistic targets this year, though he noted that Bitcoin should hold above $100,000 in a downside scenario.
What to watch next
Key indicators to follow include daily ETF inflows and outflows, institutional custody activity, on-chain metrics for accumulation, and broader macro headlines that influence risk appetite. If inflows resume at a sustained pace, the $107K–$108K level could remain a solid floor. If they don’t, traders should prepare for increased volatility and the possibility of a protracted consolidation period in the cryptocurrency market.
This analysis underscores the direct link between ETF flows and BTC price dynamics — and why institutional accumulation remains a central theme for crypto investors watching Bitcoin’s next major move.
Source: cointelegraph
Leave a Comment