Institutions Scoop Up 11,000 BTC as Price Slips—$135K Projection in Sight
Institutional appetite for Bitcoin remains robust, even as the price of BTC briefly fell by $7,000 from recent highs. On-chain data shows that U.S. spot Bitcoin ETFs saw inflows of nearly 11,000 BTC over just two trading days, indicating that major players are doubling down rather than selling off.
ETF Inflows Soar as BTC Dips Below $116K
Bitcoin dipped under $116,000 on Tuesday, triggering buying—not selling—from institutions. According to data from Glassnode, Monday saw a net inflow of 7,500 BTC, one of the largest single-day ETF purchases in the past three months.
Even more telling was Tuesday’s reaction, with institutions adding another 3,400 BTC—bringing the two-day total to 10,900 BTC. No major outflows were recorded during the downturn, marking a shift from earlier in the year.
US spot Bitcoin ETF flows. Source: Glassnode/X
A Dramatic Shift From February’s Sell-Off
The behavior sharply contrasts with February 2025, when Bitcoin fell from nearly $100,000 to $75,000, prompting ETF net outflows of $3.2 billion over eight trading sessions. That period included a record $1.1 billion in a single-day net outflow, according to UK firm Farside Investors.
US spot Bitcoin ETF netflows for February 2025 (screenshot). Source: Farside Investors
ETF Buying Is Outpacing Bitcoin Supply
Network economist Timothy Peterson has drawn a stark conclusion from recent inflow trends. He notes that Bitcoin ETFs are acquiring BTC faster than the protocol can mint it—a structural imbalance that could drive prices higher.
“A net deficit of 343,000 BTC, worth around $40 billion, has formed due to ETF demand,” Peterson explained in a post on X.
He estimates that, based on steady institutional demand and no sudden supply increases, BTC could rise another $18,000 by year-end. Over a six-month period, Peterson projects Bitcoin could reach between $130,000 and $135,000—driven primarily by ETF activity.
Monthly mined BTC vs. ETF acquisitions. Source: Timothy Peterson/X
Digital Scarcity Meets Institutional Momentum
Bitcoin’s supply remains tightly regulated by its code, halving every four years. This digital scarcity, when met with surging ETF demand, has created a supply squeeze reminiscent of previous bull cycles. If current inflow trends persist, the price pressure may intensify, reinforcing bullish expectations.
Rhapsody of Realities is a life guide that brings you a fresh perspective from God’s Word every day. It features the day’s topic, a theme scripture, the day’s message, the daily confession and the Bible reading plan segment. It is God's Love Letter to You!
