$588 Million Bitcoin ETF Inflows Show Strong Institutional Support Amid Price Drop
Bitcoin sees significant institutional backing with $588 million in ETF inflows, while long-term holders maintain their positions. Key support at $105,662 is crucial for further upward momentum.
Bitcoin has experienced significant volatility recently, largely driven by geopolitical tensions. However, over the last 48 hours, those concerns have begun to dissipate, leading to a recovery in Bitcoin’s price.
While some investors panicked and exited the market, others remained unbothered, aiding the asset’s recovery.
Bitcoin Finds Institutional Backing
Bitcoin ETFs saw a remarkable $588 million in inflows over the last 24 hours, marking the highest level in over a month. The last time inflows reached this level was on May 22, when Bitcoin ETFs recorded $934 million in inflows. This surge is a clear indicator of rising confidence among institutional investors.
Despite the market’s volatility, institutional support remains strong. Last week’s inflows suggest that even in times of uncertainty, large investors are continuing to place their faith in Bitcoin. This trend points to a broader, long-term institutional commitment to Bitcoin despite short-term price fluctuations.
Bitcoin ETF Flows. Source:
Farside
Bitcoin’s Long-Term Holder (LTH) Spending Binary Indicator shows minimal spending for the first time since June 10. With LTH supply nearing an all-time high of approximately 14.7 million BTC, this indicates continued conviction among seasoned investors. These long-term holders are reluctant to distribute their holdings, signaling a strong belief in Bitcoin’s long-term potential.
When LTHs choose to hold and accumulate, the liquid supply of Bitcoin decreases, creating a natural supply squeeze. If demand rises during these periods, prices can be pushed higher. Historically, moments of minimal long-term holder selling, such as late 2020 and post-March 2020, have set the stage for explosive price rallies.
Bitcoin LTH Spending Indicator. Source:
Glassnode
BTC Price Needs To Breach Some Barriers
Bitcoin’s price is currently at $106,554, just 3.2% away from reaching the significant psychological price point of $110,000. To make this move, however, Bitcoin must first secure $105,662 as a support level. This support is critical for establishing the foundation for further gains.
If Bitcoin manages to bounce off this support, it could push past the $108,000 resistance level. Successfully breaking through this threshold would provide Bitcoin with the necessary momentum to continue rising toward the $110,000 mark. This would indicate a continuation of the bullish trend, likely attracting more institutional interest.
Bitcoin Price Analysis. Source:
TradingView
However, if market conditions reverse or investors decide to sell, Bitcoin could fall below the $105,662 support, potentially slipping below $105,000. If this occurs, the bullish thesis would be invalidated, and Bitcoin would face further downward pressure, indicating a shift in market sentiment.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
AI Capital Expenditure Faces a Dilemma: Accelerating Puts Pressure on Cash Flow, Slowing Down Undermines the Growth Narrative
Nomura Securities believes that the AI investment narrative is mired in an internal contradiction: if hyperscale cloud providers accelerate capital expenditures, their free cash flow will continue to be drained, raising doubts about the sustainability of financing; if they slow down, it would indicate a loss of confidence in AI demand and profitability expectations. Both paths lead to sell-offs. The crowded long positions accumulated during the AI agent boom in September have triggered large-scale stop-losses under negative catalysts, spreading to US Treasury bonds, exchange rates, and commodity markets, resulting in systemic deleveraging.
Amazon (AMZN.US) CEO: AWS cloud computing capacity is fully booked until 2027, and a large amount of capacity has already been committed by customers for 2028
On Friday, Jassy stated that with the growing demand for artificial intelligence (AI) infrastructure, Amazon AWS cloud computing capacity is virtually sold out through 2027, and a significant portion of 2028 capacity has also been pre-booked by customers.
AI trading collapse: Will Anthropic postpone its "Super IPO"? The "scheduled listing date" in mid-November is approaching.
The time window is extremely tight—according to SEC regulations, the S-1 filing must be submitted by next week at the latest, and prediction markets estimate the probability of a listing within the year at around 80%. The sell-off in the AI sector has cast a shadow over the listing prospects, and the previous plan to go public in September has already fallen through. Several market participants say that Anthropic may face pressure to delay its listing, but some analysts point out that the company's urgent need for capital may drive it to stick to the original plan.
Crypto prices
More
