The market is panicking due to the Bitcoin (BTC) price movement which reached $60,000 last week. However, in this situation, a ray of hope shines on investors. Bitcoin spot exchange-traded funds (ETFs) in the US recorded continuous inflows for the first time in almost a month, breaking the negative streak.
From January 15th, Bitcoin ETF had no consecutive daily inflows. This situation was broken last Friday, February 6th, with an inflow of approximately $371 million into financial instruments, and yesterday, Monday, February 9th, with an inflow of $145 million.
The graph below shows the flow of funds into and out of Bitcoin ETFs on a daily basis.
This investor movement is one of the driving forces behind the recent recovery in digital currencies. He managed to shake off the weakness shown the previous week.
The correlation between the fund’s performance and the price of Bitcoin was evident in the last session. This occurred as the price of Bitcoin recovered from a low of $60,000 on Thursday, February 5th to around $70,000. This price was able to rise to $72,226 yesterday until Monday, February 9th. So far on the day, it has fallen to $68,986.
How Bitcoin ETF works
The nature of these financial instruments requires continuous interaction with the cash market. Spot ETF management companies must purchase Bitcoin and hold it in their own vaults. to support their actions.
This process of acquiring Bitcoin for the Backspot ETF creates direct and tangible demand in the market. As more investors put money into these funds, the companies managing the ETFs will need to acquire more Bitcoin to maintain adequate support.
This reduces the amount of Bitcoin available on the open market, Prices may increase due to limited supplyas reported by CriptoNoticias.
Outlook for Bitcoin price stability
Despite the optimism provided by this data, Bitcoin’s volatile history suggests that: Assets may enter a consolidation phase. From technical analysis, lateral movements may be observed within the range defined by current support and resistance before a clear direction emerges.
The decisive factor will be the sustainability of capital inflows to ETFs. If flows maintain or accelerate, the cumulative effect of purchases by managers can cancel out sales by other participants, pushing prices up. If this is an isolated rebound, a leveling out or further pullback is still a likely scenario.
Over the next few days, markets will wait to see whether these flows signal a structural shift in institutional investor sentiment, or whether they are merely a response to a specific pullback. If the trend of increased inflows into ETFs is confirmed to be sustained, the continued decline in Bitcoin in circulation could help support a breakout of recent highs, supported by increased integration with traditional financial infrastructure.
