Bitcoin ETFs traded in the US have maintained positive flows for 8 consecutive days, demonstrating institutional investors’ confidence in $BTC . Despite $11.2 billion inflows into the funds over eight weeks, Bitcoin’s price has only increased by 10% during this period. Speculation suggests that selling pressure from long-term holders or early investors has offset ETF demand and affected Bitcoin’s price. Geopolitical tensions in the Middle East have also increased Bitcoin’s volatility, contributing to stagnating prices despite institutional demand.
Over the past eight weeks, Bitcoin exchange-traded funds (ETFs) have raised more than $11.2 billion in capital. However, the leading crypto asset’s price has only increased by about 10% during this period. Bitcoin ETFs recorded positive net flows from April 17 to May 23, followed by outflows in the weeks of May 30 and May 6. However, inflows have continued in the past two weeks.
The funds have returned to positive territory since June 9, recording a total net flow of $2.4 billion over the past eight days. The mismatch between capital inflows and price performance has triggered a wave of anxiety and speculation, while markets have also been affected by macro developments and geopolitical tensions. Matrixport highlighted the mismatch between $BTC price and spot Bitcoin ETF inflows over the past eight weeks in a recent X post: “Bitcoin ETFs continue to buy, but why isn’t the price moving higher?”
Despite continued demand from institutional vehicles, Bitcoin’s moderate response suggests that other factors could be offsetting the inflows. Supporting this argument, researchers in a 10x Research report warned of significant but largely invisible selling that could be driven by long-term holders or early investors.
The sluggish pace of Bitcoin’s price has also raised questions about the behavior of high-profile institutional buyers like Strategy (MSTR). Strategy’s current pace of BTC accumulation appears to be more limited than its more aggressive purchases following Donald Trump’s election as US president. This indicates a cautious or distribution-heavy market environment. “Note that the position size has decreased significantly (52% on average) with each purchase,” says Jacob King, financial analyst and CEO of Whalewire.
On the other hand, geopolitical instability is also weighing on price momentum. According to Santiment, the ongoing conflict between Israel and Iran has led to a noticeable increase in volatility in crypto markets. The downtrend strengthened between June 12-15, with over $200 billion lost from the total crypto market value.
Bitcoin has stabilized around $105,000 after a 4-6% decline. Santiment analysts note that this trend is reminiscent of previous geopolitical shocks such as the Russian invasion of Ukraine or the Israeli-Palestinian conflict in October 2022.
“Despite the initial panic, Bitcoin has remained in the $104,000 to $105,000 range thanks to consistent ETF inflows and a relative easing of tensions, mirroring the typical ‘risk aversion, followed by stability’ pattern seen in previous geopolitical crises,” Santiment wrote in a post.#BTC #Trump #ETF
