Bitcoin Drops 2% After Tariff Deal Boost, Institutional Inflows Stall

On Monday, the United States and China agreed to a 90-day tariff relief deal, sparking renewed optimism across global financial markets. This sentiment shift also benefited crypto markets, with Bitcoin (BTC) soaring to an intraday high of $105,819. However, profit-taking soon followed, causing BTC to shed some of its gains and close at $102,729. The dip below the psychologically significant $105,000 threshold dampened institutional enthusiasm, discouraging large capital inflows into spot Bitcoin ETFs. As a result, net inflows into the ETF market stalled at just $5.2 million on Monday, representing the lowest single-day total inflow since April 14.
BlackRock’s iShares Bitcoin Trust (IBIT) recorded the highest daily inflow among all issuers, with a net inflow of $69.41 million on Monday. This brought its total historical net inflow to $44.78 billion. Meanwhile, Grayscale’s Bitcoin Trust ETF (GBTC) recorded the highest net outflow among all issuers on Monday, with $32.92 million leaving the fund. GBTC’s total historical net inflows stand at $22.95 billion as of this writing. The pullback signals that institutional investors may be holding back until BTC reclaims or stabilizes above key resistance levels.
At press time, BTC trades at $102,367, down 2% over the past 24 hours. While the dip signals near-term selling pressure, market sentiment remains optimistic. This is reflected by BTC’s funding rate, which remains positive, suggesting that traders continue to bet on a sustained rally, despite the temporary retreat. A look at the BTC liquidation heatmap reveals a significant concentration of liquidity around the $105,337 level. These zones, marked in yellow, indicate that if BTC resumes its upward momentum, it could potentially breach the $105,000 level, assuming the current bullish setup holds. In such a scenario, traders holding short positions could face a short squeeze.

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