Institutional Demand Drives Bitcoin ETFs to $2.3B Inflows Amid Rate-Cut Hopes

U.S. spot Bitcoin ETFs have drawn in $2.3 billion in inflows from September 8 to 12, marking the highest weekly inflows since mid-July, according to aggregated data from Farside and SoSoValue. BlackRock’s iShares Bitcoin Trust (IBIT) led the inflows with just over $1 billion, followed closely by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with nearly $850 million. Other issuers such as Ark Invest and Bitwise also reported gains, though on a smaller scale. Daily inflows showed a steady pattern, with the highest amount recorded on Wednesday at $742 million and Friday at $642 million. Analysts suggest that these inflows reflect growing structural demand from institutional investors, who are increasingly viewing Bitcoin as a long-term asset allocation. The trend aligns with the broader macroeconomic environment, particularly with growing expectations that the U.S. Federal Reserve will cut interest rates, which has historically been a positive catalyst for risk assets. Bitcoin’s price, which recovered above $115,000 during the same period, further reinforced investor optimism.

Conversely, recent weeks have seen significant whale activity that has raised concerns about potential downward pressure on Bitcoin’s price. A major Bitcoin whale executed a short position of $332 million, later increasing it to $464 million with 40x leverage, with a liquidation price set at $85,842. While the whale eventually covered 500 BTC, it re-engaged in shorting to keep the price below $83,700, sparking speculation about its broader market intentions. Additionally, the U.S. Bitcoin ETF landscape has faced challenges, with major net outflows recorded between March 2025 and the end of the fifth week, amounting to over $5 billion. BlackRock’s IBIT, Fidelity’s FBTC, and Grayscale’s GBTC accounted for the largest individual outflows, with the overall trend attributed to profit-taking, macroeconomic uncertainties, and a shift toward safer assets amid geopolitical tensions. These outflows have raised concerns about the sustainability of Bitcoin’s price rally, with analysts noting that the bearish sentiment could persist if macroeconomic conditions remain uncertain.

Technical analysis of Bitcoin’s price action reveals a mixed picture, with the asset currently trading above both short-term and long-term moving averages on the daily chart. The minor support level is estimated at $75,800, with a breach below this level potentially dragging the price down to $72,000 or $65,000. Immediate resistance lies around $86,000, and a confirmed break above this level could push Bitcoin toward $90,000, $95,000, or even $100,000. A secondary resistance level at $110,000 could see further upward movement if the asset closes above it. Analysts recommend a cautious approach for traders, with strategies such as selling on rallies around $90,000 and setting stop-loss orders at $100,000 to manage risk effectively. These technical indicators, combined with whale activity and ETF outflows, suggest that the market is in a state of flux, with potential for both short-term volatility and long-term consolidation.

In the broader context, Bitcoin’s role as a store of value and institutional asset continues to evolve. Institutional demand for Bitcoin has been driven by regulatory clarity and growing acceptance of digital assets as a legitimate investment class. For instance, the U.S. government has provided a legal framework that has encouraged enterprises to enter the market, with companies such as a large media firm investing $2 billion in Bitcoin as part of their treasury reserves. Additionally, the Bitcoin halving event in early 2024, which reduced the rate of new supply entering the market, has contributed to a sense of scarcity that underpins its price appreciation. Analysts predict that Bitcoin’s price could continue to rise, with some forecasts suggesting a potential target of $140,000 to $180,000 by the end of the year. However, short-term corrections to $114,000 or even $110,000 are not out of the question, particularly in a market environment where macroeconomic factors and investor sentiment can shift rapidly.

The broader cryptocurrency ecosystem has also seen significant activity, with Solana emerging as a notable alternative to Bitcoin. Solana’s price has surged by 34% in the past month, reaching above $200 and reinforcing its position as a top-performing altcoin. This growth is attributed to Solana’s fast transaction speeds, low fees, and increasing adoption in decentralized finance (DeFi), gaming, and NFTs. Several major asset managers have introduced new crypto investment products that include Solana, further boosting its reputation and liquidity. While Solana’s volatility remains higher than Bitcoin’s, it has shown a decline from 87% in 2022 to 62% in 2025, indicating improving stability. Analysts suggest that Solana’s price could continue to rise, with technical indicators pointing to potential targets of $220–$300. However, short-term pullbacks to $165–$175 are also possible, particularly if trading volume drops or regulatory concerns arise. The contrast between Bitcoin and Solana highlights a maturing market, where investors are increasingly diversifying their portfolios to include both stable and high-growth assets.