$BTC

The price of Bitcoin (BTC) depends on institutional flows, protocol updates, and major economic changes.

ETF fund flows – Volatility of $148 billion in fund assets affects liquidity (mixed impact)

BIP-119 update – Smart contracts and adoption may enhance decentralized finance (positive impact)

Risks of altcoin rotation – Bitcoin's dominance at 59.91%, and the altcoin season index on the rise (negative impact)

Detailed Analysis

1. Liquidity fluctuations in ETFs (mixed impact)

Overview: U.S. ETFs investing in Bitcoin hold assets worth $149.26 billion, representing 3.1% of the total BTC supply. Recent weeks have seen outflows of $1.4 billion, but the BlackRock IBIT fund is now generating more fees than its S&P 500 fund. A potential vote in Brazil on August 20 to add BTC to its reserves may encourage other countries to take similar steps.

What this means: Sustained flows exceeding $200 million daily could push the price of BTC towards $122,000 (the highest level in July 2025). Outflows may confirm a local price top. Historical data for ETFs shows a correlation of 0.82 with the price of BTC (CryptoQuant).

2. BIP-119 update for smart contracts (positive impact)$BTC