Bitcoin News Today: Bitcoin Faces Sell-Side Pressure Despite $9 Billion ETF Inflows

Bitcoin ETF inflows have reached a five-week total of $9 billion, the highest since spot products launched in January 2024. However, this inflow is juxtaposed with a significant movement of Bitcoin into exchanges, where over 69,000 BTC, valued at the same amount, entered exchanges in just 16 hours. This divergence suggests a potential sell-side pressure that could drive the price of Bitcoin below $100,000.

Bitcoin's price has been volatile, trading between $115,930 and $118,330 on July 16, after pulling back from its July 14 high of $123,000. This pullback follows a sudden spike in Bitcoin movements from long-dormant wallets, indicating that large holders may be preparing to sell into strength. The movement was led by a whale wallet previously holding 16,800 BTC, with more than 2,000 BTC later deposited into major exchanges. Glassnode data shows $1.96 billion in profit realization on-chain over the weekend, further supporting the sell-side pressure.

Despite the strong start to July for Bitcoin ETFs, attracting $3.4 billion in inflows so far, including a record $2.2 billion over the past two days, the largest two-day net inflow on record, the concurrent spike in sell-side pressure could tip Bitcoin into its first major correction. Exchange inflow trends typically signal intent to sell, while ETF purchases must be held in custody, reducing available supply. This dynamic creates a complex market environment where bullish and bearish sentiments coexist.

Fibonacci retracement levels suggest critical short-term support at $110,700 and $107,700, calculated from the recent rally between $98,200 and $123,000. A confirmed breakdown above these levels could reopen the path toward $98,000, the last significant consolidation level. The $110K–$107K band will serve as a pressure point. If breached, the charts point to $98K as the next level of interest. Traders should monitor on-chain activity and ETF flows in tandem—neither tells the whole story alone.

On the macro side, the legislative push during the U.S. “Crypto Week” has introduced clearer language around digital asset custody, stablecoins, and spot ETF transparency. Laws like the proposed GENIUS Act have buoyed market sentiment. Meanwhile, gold ETFs lost $2.8 billion over the same period that Bitcoin ETFs gained $9 billion. This rotation highlights a broader institutional preference shift from traditional safe-haven assets to crypto-based exposure.

Institutional demand remains strong, ETF flows continue to build, and long-term regulation looks more constructive. But inflow metrics alone do not negate the mounting signals from whales offloading and profit-taking. Bitcoin may have gained more billions in ETF capital year-to-date, but that hasn’t stopped some early holders from exiting. And until exchange outflows resume, short-term downside pressure remains firmly on the table.

Despite the significant inflow of $9 billion into Bitcoin, the cryptocurrency faces potential downward pressure. The surge in sell-side pressure, coupled with the influx of Bitcoin into exchanges, could trigger a major correction. This situation arises as exchange inflow trends typically indicate heightened selling activity, which could drive the price below $100,000. The recent rejection of the $123,000 peak further underscores this risk, as the price could drop to $98,000 if key support levels fail to hold.

The current market dynamics are complex, with bullish traders anticipating a rise to $110,000, driven by technical patterns and liquidity shifts. However, cautious analysts predict a potential drop to $80,000 due to liquidity concerns. The firm's forecast of Bitcoin reaching $200,000 by the end of 2025, based on its fixed supply, adds another layer of uncertainty. This conservative yet compelling view contrasts with the immediate market pressures, highlighting the dual nature of Bitcoin's price movements.

The recent price action, where Bitcoin spiked above $123,000 before retreating, reflects the volatility inherent in the cryptocurrency market. The asset's performance during "Crypto Week" further illustrates this volatility, as it reached a new all-time high above $122,000 after several weeks of consolidation within the $100,000–$110,000 range. This breakout was fueled by a surge in risk-on sentiment across equities and significant institutional inflows into spot Bitcoin and Ethereum ETFs.

The activation of a long-dormant wallet, containing $9 billion in Bitcoin, adds another layer of complexity to the market. The sudden movement of such a large amount of Bitcoin after 14 years of inactivity could have significant implications for price stability. The influx of Bitcoin into exchanges, coupled with the potential for sell-side pressure, creates a scenario where the price could slip below $100,000 despite the recent inflows.