Bitcoin ETF Inflows Cross $1.8B: Will BTC Respond With a Rally to $100K?

Bitcoin ETF inflows have rebounded, reaching $1.8 billion in weekly net inflows, the highest since early October 2025. The inflows have been attributed to renewed institutional interest in the asset class, particularly as Bitcoin (BTC) tests key resistance levels near $98,000. Despite the strong inflows, total net assets under management in U.S. spot Bitcoin ETFs remain 24% below their peak in Q4 2025, indicating that the recovery is still in its early stages.

Analysts suggest that sustained demand from institutional investors is needed for Bitcoin to break through the $100,000 barrier. The structural imbalance between Bitcoin’s supply and ETF demand remains a key factor, with ETFs having purchased more than 710,000 BTC since their launch in January 2024.

The current supply-demand imbalance favors ETFs in the long run, as new Bitcoin supply remains relatively predictable while institutional access is expected to expand in 2026.

Why Did This Happen?

Bitcoin ETFs recorded a significant inflow of $1.8 billion in the week ending January 16, 2026, driven by renewed institutional demand and broader market sentiment. The inflow followed a period of consolidation and came as Bitcoin tested key resistance levels around $98,000, signaling renewed interest from long-term investors.

Institutional participation was evident through major ETF providers such as Fidelity, Bitwise, and BlackRock, which saw significant inflows. For instance, BlackRock’s ETF alone recorded a daily flow of $315.8 million on January 16, 2026.

How Did Markets Respond?

Bitcoin’s price rose as a result of the inflows and positive macroeconomic signals. BTC surged above $96,000, with the price supported by easing inflation data and bearish liquidations. Data from Coinglass showed more than $290 million in Bitcoin short positions liquidated within 24 hours, adding to the upward momentum.

Ethereum also benefited from the inflows, with Ether-focused ETFs seeing $130 million in net inflows. The broader crypto market capitalization crossed $3.3 trillion as risk-on sentiment gained traction.

The rally was not isolated but part of a broader trend across risk assets, with U.S. equities also rising in response to lower real-rate expectations. This suggests that Bitcoin’s move was supported by a shift in global investor sentiment.

What Are Analysts Watching Next?

Analysts remain cautious, noting that strong ETF inflows are necessary but not sufficient to drive a sustained rally in Bitcoin’s price. The Bitcoin macro intelligence newsletter, Ecoinometrics, emphasized that short bursts of inflows have previously led to brief price bounces without lasting momentum.

Bitcoin’s ability to maintain above $98,000 is being closely watched, as consolidation near $100,000 could indicate a continuation of the upward trend. On-chain metrics, such as the 90-day Spot Taker Cumulative Volume Delta, have shifted to a taker buy dominance phase, signaling improved supply-demand dynamics.

Regulatory developments also remain a key focus. The delayed markup of the Clarity Act has created mixed sentiment, with traders waiting for clarity on potential legislative support for Bitcoin’s institutional adoption. Looking ahead, Bitwise has forecasted that ETFs could purchase more than 100% of the new Bitcoin supply as institutional demand continues to accelerate. If this trend persists, it could reinforce the narrative of Bitcoin as a legitimate treasury asset, attracting further institutional investment.