On Monday, the US and China agreed to a 90-day tariff relief agreement. The announcement sparked new optimism across global financial markets, and crypto markets also benefited from a shift in sentiment.
However, this marked only $5 million in net inflow into the Bitcoin ETF market, the lowest daily total inflow since April 14th.
Profits slow down demand for Bitcoin ETFs
BTC surged to an intraday high of 105,819 as trading activities spiked on Monday. But soon after increasing profits, the major coins cut some of that profits, approaching $102,729.
The flooding below the psychologically significant $105,000 threshold has attenuated institutional enthusiasm and discouraged the large capital inflow into spot Bitcoin ETFs. As a result, net inflows into the ETF market stagnated at just $5.2 million on Monday, representing the lowest daily total inflow since April 14th.
A total of daily inflows. Source: Farside
BlackRock’s iShares Bitcoin Trust (IBIT) recorded the highest daily influx of all publishers. On Monday, the fund’s net inflow was $69.41 million, bringing its total historic net inflow to $44.788 billion.
Meanwhile, Grayscale’s Bitcoin Trust ETF (GBTC) recorded the highest net outflow of all issuers on Monday, with $32.92 million leaving the fund. The total historical net inflow of GBTC is $229.5 billion at the time of this writing.
Pullbacks indicate that institutional investors may be restrained until BTC exceeds or stabilizes its main resistance level.
Bitcoin cools after surges to $105,000 in a short time
At press time, BTC has dropped 2% over the past 24 hours, trading at $102,367. On Monday, the coin surged temporarily to a three-month high of $105,819, following US-China trade agreement news. However, the rally was short-lived as profits from traders caused pullbacks, causing BTC to fall below the psychological $105,000 price mark.
DIP shows short-term sales pressure, but market sentiment remains optimistic. This is reflected in BTC’s funding rate, which remains positive, suggesting that traders continue to bet on sustained gatherings despite a temporary setback.
BTC funding rate. Source: Coinglass
Furthermore, looking at the BTC liquidation heat map reveals a large concentration of liquidity around the $105,337 level.
BTC fluidity heat map. Source: Coinglass
The heatmap highlights potential price ranges where large-scale liquidation can occur and provides traders with insight into areas that are not burning.
These zones, marked in yellow, indicate that once BTC resumes upward momentum, it could violate the $105,000 level, assuming that the current bullish setup will be retained. In such a scenario, traders holding short positions can face short apertures.
