Bitcoin is showing early signs of recovery as it trades above key demand levels following weeks of heavy selling pressure and rising macroeconomic uncertainty. After plunging more than 29% from its all-time high of $109,000 in January, BTC managed to bounce over 7% from its recent low of $81,000 recorded last Tuesday. This rebound has sparked cautious optimism among market participants, although analysts remain divided on Bitcoin’s next move.
Some believe that the recent rally could be short-lived and mark the beginning of a prolonged bear market. Others argue that Bitcoin’s long-term fundamentals remain strong and that a bullish continuation is still possible. One encouraging sign comes from institutional flows: for the fourth consecutive trading session, the net USD inflow into US Spot Bitcoin ETFs has remained positive.
This consistent inflow signals continued interest from institutional investors despite market turbulence. As these inflows strengthen Bitcoin’s on-chain demand, bulls could gain the momentum needed to push prices back toward critical resistance levels.
While uncertainty still hangs over the broader financial markets—driven by inflation fears, interest rate speculation, and geopolitical tensions—Bitcoin appears to be at a crucial crossroads where demand from ETFs may play a decisive role in shaping its next major move.
ETF Inflows Signal Renewed Institutional Confidence Despite Market Uncertainty
Bitcoin is trading above key support levels, but bulls still have work to do to confirm a full recovery. Since late January, global markets have been under pressure from growing trade war tensions and unpredictable actions by U.S. President Trump, including aggressive tariff policies and foreign policy shifts. These developments have added volatility across risk assets, from crypto to equities, and dampened hopes for a strong bull run in 2025.
While recession fears are spreading and talk of a broader bear market continues to surface, some analysts believe Bitcoin’s long-term trend could remain intact. One encouraging sign comes from institutional demand.
Top analyst Axel Adler shared on-chain data via X, revealing that net USD inflows into U.S. Spot Bitcoin ETFs have stayed positive for the fourth consecutive trading session. The total amount added to these ETFs during this period reached $632 million, highlighting renewed confidence from institutions.
These steady inflows, even during market uncertainty, suggest strong buying pressure at current levels. If this trend continues, it could serve as a foundation for a larger price recovery. For now, Bitcoin remains in a fragile position. Bulls need to push prices above $88K and reclaim $90K to build momentum. If ETF demand holds, this could be the catalyst needed to…
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