Bitcoin Headed to $100K? New Institutional Demand Fuels Massive Push

Bitcoin spot ETFs recorded their largest daily inflows in three months, reaching $753.7 million on Tuesday, the highest since October 7, 2025. This trend indicates a resurgence in institutional demand, which has been absent during the year-end portfolio rebalancing period. Similar inflows were observed in Ethereum ETFs, which added $130 million in the same period. The renewed activity points to increased risk appetite and a shift in investor behavior following a period of caution and de-risking late last year.

Bitcoin's price climbed over 3.25% in the past day, reaching $95,084, while Ethereum rose over 5% to $3,293. The upward movement is linked to ETF inflows absorbing Bitcoin supply well beyond miner output, which has created a structural tailwind for prices. Analysts note that the rally is being driven by spot demand rather than leveraged trading, which adds a layer of sustainability to the current market move.

The recent ETF inflows coincide with improved macroeconomic signals, including recent U.S. consumer price index data showing inflation cooling from its peak. This supports expectations for potential interest rate cuts, which typically boost investor appetite for risk assets.

What Are the Drivers Behind the ETF Inflows?

The resurgence in institutional buying has been driven by several factors. First, strong ETF demand has absorbed the available Bitcoin supply beyond what is generated by daily miner output. This structural absorption has helped lift prices while reducing the availability of circulating Bitcoin. Second, improved inflation data has raised market expectations for future interest rate cuts, which are generally favorable for risk-on assets.

Another key factor is the progress on U.S. crypto legislation. The U.S. Senate Banking Committee is preparing to markup a market structure bill expected to provide regulatory clarity for digital assets. This development is seen as a catalyst for institutional participation, which has been constrained by regulatory uncertainty in the past.

How Is the Market Reacting to the ETF Momentum?

Market participants are responding to the ETF inflows with optimism. The Bitcoin price has held above $96,000 after hitting a two-month high at $97,800 earlier in the week. The upward momentum is supported by three consecutive days of ETF inflows and a strong technical outlook. The relative strength index (RSI) on the daily chart is approaching the overbought level of 70, signaling strong bullish momentum.

Ethereum is also showing signs of strength, with traders expressing confidence in the market through the options market. Call options around the $100K strike level are being purchased at a higher rate than sold, which suggests traders are positioning for a potential retest of key levels.

What Are Analysts Watching for Next?

Analysts are closely monitoring whether the ETF inflows can be sustained. Vincent Liu, CIO of Kronos Research, emphasized that sustained inflows are crucial for maintaining the current momentum. If demand continues, Bitcoin could see a push toward the $100,000 psychological level.

Nick Ruck of LVRG Research noted that the current market environment represents a "healthy reset" after a period of underperformance in the previous quarter. He suggested that the return of institutional buyers is a positive signal for the broader crypto market.

Institutional adoption is also gaining traction in other areas, such as corporate treasury strategies. Companies like MicroStrategy have continued to build Bitcoin reserves, signaling a long-term commitment to digital assets as a hedge against inflation. This trend could further support prices by reducing sell pressure from institutional participants.

The upcoming U.S. Senate Banking Committee markup of the Digital Asset Market Clarity Act is another focal point for market observers. The legislation is expected to clarify the regulatory framework for digital assets, which could provide further impetus for institutional participation.

The combination of sustained ETF inflows, improved macroeconomic conditions, and regulatory developments suggests that the current rally in Bitcoin and Ethereum has a solid foundation. Whether it will continue toward the $100,000 level will depend on how these factors evolve in the coming weeks and months.