Bitcoin ETFs Note $1.4 Billion Inflows This Week As Indicator Flashes Buy Signal

Bitcoin spot ETFs recorded net inflows of $1.4 billion during the week of January 15, 2026, reversing earlier outflows from mid-January according to market data. The surge in capital came as Bitcoin climbed to two-month highs above $97,000, according to market data. The inflows are seen as a sign of growing institutional and retail interest in Bitcoin as an investment vehicle according to FXStreet.

BlackRock’s iShares Bitcoin ETF (IBIT) led the inflows, capturing $648 million in new capital. Fidelity’s Wise Origin Bitcoin Fund (FBTC) and ARK Invest’s ARK 21Shares Bitcoin ETF (ARKB) also saw notable inflows of $125.4 million and $30 million, respectively according to Cointelegraph.

Bitcoin’s price reached $97,957 on Wednesday, marking its first time above this level since mid-November. The rise in price coincided with a surge in demand for Bitcoin ETFs, which attracted over $1.7 billion in inflows over three consecutive trading days according to Cointelegraph.

Why Did This Happen?

The return of institutional demand for Bitcoin is a key factor behind the recent price surge. Institutional investors have been accumulating Bitcoin through ETFs, with net inflows reaching $1.5 billion since the start of the year according to LookOnChain. This marks a shift from the outflows observed in late 2025, as larger allocators began re-entering the market according to Cointelegraph.

Market watchers note that the inflows suggest buying pressure may have absorbed—and possibly exhausted—selling pressure that had previously held Bitcoin in a consolidation phase according to LookOnChain. The Crypto Fear & Greed Index, a sentiment indicator, rose to 61, entering “greed” territory for the first time since October according to Cointelegraph.

How Did Markets React?

Bitcoin’s price movement was mirrored by a decline in the number of BTC holders. Santiment data shows a reduction of 47,244 Bitcoin addresses, a trend that has historically preceded price gains according to FXStreet. The drop in the number of holders suggests that retail selling pressure is easing, potentially opening the door for further price appreciation.

Institutional buying was also reflected in the market’s response to short liquidations. Over $360 million in BTC short positions were liquidated in the 24 hours following Bitcoin’s price surge, with the largest single liquidation reaching $34.9 million on HTX according to FXStreet.

Bitcoin price briefly exceeded $97,957 before retreating slightly to $96,642 at the time of reporting. Despite this pullback, analysts remain optimistic about the asset’s trajectory given the strength of institutional demand and the shift in market sentiment according to Cointelegraph.

What Are Analysts Watching Next?

Analysts are closely monitoring whether the current inflow trend can be sustained. While a single day of strong inflows can stabilize prices, they argue that several consecutive weeks of positive ETF demand are needed to confirm a broader trend according to TradingView.

Bloomberg ETF analyst Eric Balchunas noted that the current pattern of inflows “suggests that maybe the buyers have exhausted the sellers,” a reference to Bitcoin breaking out of a prolonged consolidation phase according to Cointelegraph. However, he cautioned that the final outcome remains uncertain until the trend is solidified according to LookOnChain.

Looking ahead, Bitcoin faces key technical levels that could influence its next move. The 200-day moving average currently stands at $106,115, and a sustained break above the 100-day moving average could signal continued institutional buying according to Blockchain Magazine.

With Bitcoin trading near $95,684, investors are also watching for further legislative developments that could impact the market. A contentious U.S. cryptocurrency market structure bill has faced delays, raising uncertainty about regulatory clarity according to Crypto News. This legislative uncertainty has already caused a pullback in ETF inflows, which fell to $100.1 million on Thursday according to Crypto News.

The ETF infrastructure itself is evolving to support institutional demand, with spot Bitcoin ETFs now holding $123 billion in assets under management according to Blockchain Magazine. This structural shift is enabling institutional investors to access Bitcoin through regulated products, bypassing the complexities of direct custody according to Blockchain Magazine.

Bitcoin’s ability to maintain institutional demand amid legislative uncertainty and market volatility will be critical for its next phase of growth. Analysts suggest that the convergence of reduced whale selling, ETF inflows, and corporate adoption is creating favorable conditions for long-term price appreciation according to Blockchain Magazine.