So far this week, net inflows into Bitcoin spot ETFs have exceeded $1 billion in just three days of trading. These funds have now recorded eight consecutive days of positive flows.
However, the capital inflow has occurred despite BTC’s muted price action since the beginning of the week. The contrast between sustained institutional buying and weak spot price performance amid rising geopolitical tensions raises an important question: Is sentiment quietly shifting in favor of long-term accumulation?
Bitcoin ETFs Top $1 Billion Even as Price Struggles
According to SosoValue, BTC-backed funds have netted $1.02 billion in inflows this week. This display of institutional investor confidence comes amid the coin’s lackluster performance since the beginning of the week, as geopolitical tensions escalate in the Middle East.
Total Bitcoin Spot ETF Net Inflow. Source: SosoValue
As uncertainty spikes this week, BTC has continued to oscillate within a tight range, facing resistance around $105,000 and finding support at $103,000. On Thursday, the coin dropped to an intraday low of $103,929 before recovering to close near the $105,000 mark.
However, despite BTC’s sluggish price movement, there has been sustained demand for spot Bitcoin ETFs, albeit with varying daily inflow volumes. The persistent interest suggests a growing belief among institutional investors that price dips present an opportunity rather than a deterrent.
This shows continued long-term confidence, even as short-term volatility lingers.
Bitcoin Traders Stay Bullish Despite Price Performance
While BTC’s short-term price performance remains muted, on-chain data points to cautious optimism. For example, the coin’s funding rates across derivatives platforms remain positive, suggesting that traders are still willing to pay to hold long positions. As of this writing, the coin’s funding rate is 0.0066%.
The funding rate is a recurring fee between traders in perpetual futures markets to keep the contract price aligned with the spot price. When it is positive, it means long sellers are paying short traders, a sign that bullish sentiment dominates and traders expect prices to rise.
Furthermore, in the options market, demand for calls edges out puts, indicating that market participants are leaning toward the possibility of a near-term rebound rather than further downside.
BTC Bulls and Bears Battle for Next Move
Despite its price stagnation, the sustained appetite for spot BTC ETFs signals that institutional investors see current levels as a buying opportunity, not a red flag. However, whether this trend will persist remains uncertain, especially as escalating geopolitical tensions in the Middle East add fresh layers of volatility and risk to the broader market environment.
At press time, the coin trades at $105,980. If bullish bias climbs, the coin’s price could witness a rally and climb toward $107,745.
However, if demand falls and the bears strengthen their control, they could push BTC’s price down to $103,061.
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