Bitcoin Defies $1.23B ETF Exodus - Here’s Why Bulls Aren’t Sweating

Wall Street's crypto cash machine just hit reverse - hard. Bitcoin ETFs hemorrhaged $1.23 billion in just five trading sessions, triggering the usual panic among weak hands.

The Institutional Exodus

ETF outflows hit record territory as traditional finance players took profits amid regulatory uncertainty. Meanwhile, crypto natives kept stacking sats - because they've seen this movie before.

Real Money vs Paper Hands

While ETF flows make headlines, on-chain metrics tell a different story. Long-term holders continue accumulating at these levels, treating the dip as a discount rather than a disaster.

Another day, another billion-dollar tantrum from traditional finance - but Bitcoin's core thesis remains untouched by temporary capital flows. The digital gold narrative doesn't care about weekly ETF reports, no matter how much Wall Street wants you to think otherwise.

TLDR

• Bitcoin ETFs saw $1.23 billion in net outflows between October 13 and 17
• The $107K to $108K support zone is weakening due to low ETF inflows
• Weekly ETF net flows remain positive at $335.4 million despite volatility
• Bitcoin is trading near $108,864 after failing to hold above $113,000

Bitcoin is facing pressure near a key support level as institutional interest through US spot Bitcoin ETFs begins to slow. Between October 13 and 17, ETFs recorded $1.23 billion in net outflows. While some inflows have kept weekly totals slightly positive, the overall drop signals weakening accumulation by major investors. This slowdown may be placing the $107,000 to $108,000 support zone at risk of breaking.

ETF Outflows Raise Concerns for Price Stability

According to Bitfinex analysts, the recent slowdown in ETF inflows is creating a fragile support base for Bitcoin. In a report released Tuesday, analysts pointed to outflows totaling $1.23 billion between October 13 and 17. These outflows came after heightened market volatility and were partly triggered by geopolitical and economic news, including US President Donald Trump’s announcement of new tariffs.

Despite some recovery, ETF activity this week has been mixed. Outflows were recorded on two out of the three recent trading days. A single strong inflow on Tuesday kept overall net flows positive at $335.4 million for the week. However, analysts warned that such inflows were not consistent enough to confirm renewed institutional buying.

The $107,000 to $108,000 price range has been labeled as a key support level by Bitfinex. They explained that this area may not hold much longer if ETF inflows continue to weaken. “The lack of institutional accumulation has made the $107,000 to $108,000 zone increasingly difficult to defend as support,” the report stated.

Bitcoin’s Price Volatility Reflects Investor Uncertainty

At the time of writing, bitcoin is trading around $108,864 after recently reaching above $113,000. The price surge was brief and reversed quickly, showing that current market momentum lacks strong backing.

Bitcoin is down over 3% in the past 30 days, according to CoinMarketCap. Analysts from Bitfinex noted that Bitcoin’s current price action could serve as a warning of a longer consolidation period. If the support level around $107,000 fails, the market may enter a slower phase with fewer upward movements.

The situation has drawn attention from traders who rely on ETF performance as an indicator of broader market sentiment. While total ETF flows remain positive this week, the inconsistency in buying patterns raises questions about ongoing demand.

Institutional Buyers Show Reduced Interest

Analysts noted the “absence of meaningful dip-buying” by institutions during the recent drop in Bitcoin’s price. In earlier cycles, strong accumulation by institutional investors via ETFs played a key role in pushing Bitcoin higher.

This time, the market has not seen similar responses. Bitfinex said that continued ETF apathy could weaken one of the main drivers behind previous rallies. They added that if inflows do not recover soon, Bitcoin could face a prolonged period of sideways trading.

The lack of strong buying activity from major players shows a cautious approach in the face of macro uncertainty. Though retail traders are still active, they do not have the same influence on price as institutions.

Mixed Market Predictions for Year-End

Despite the current slowdown, some market figures continue to forecast a positive end to the year. BitMEX co-founder Arthur Hayes and BitMine chair Tom Lee have repeated earlier predictions that Bitcoin could reach $250,000 by December.

However, not all market leaders agree. Galaxy Digital CEO Mike Novogratz commented this week that such high targets are unlikely under current conditions. He stated that “a lot of crazy stuff” WOULD have to occur for Bitcoin to reach those levels. Still, Novogratz believes that Bitcoin should remain above $100,000 through the end of the year.

While opinions differ, ETF inflows remain a central factor. Until stronger and sustained institutional buying returns, the support zone around $107,000 could remain vulnerable.