Bitcoin is facing increasing pressure around a crucial support zone as U.S.-based spot Bitcoin ETFs continue to show weak inflows, raising concerns among analysts about “demand-side fragility.” Bitfinex analysts warned that the $107,000 to $108,000 support range is under strain following significant net outflows after recent market events.
Between October 13 and 17, spot Bitcoin ETFs reportedly experienced approximately $1.23 billion in net outflows, according to data from Farside. These outflows followed announcements by U.S. President Donald Trump regarding tariffs, which spooked some institutional investors and intensified market volatility.
Institutional Support Weakens
Bitfinex analysts emphasized that the lack of consistent institutional accumulation has made it increasingly difficult to defend the $107K–$108K zone as support. Without ongoing inflows from institutional buyers, Bitcoin may face a prolonged period of consolidation or even a sharper decline if selling pressure intensifies.
“The absence of meaningful dip-buying from institutional investors is a growing concern,” the report said. While inflows on Tuesday brought net flows to $335.4 million, overall sentiment remains fragile, signaling a potential vulnerability in Bitcoin’s demand structure.
ETF Performance Mirrors Broader Market Trends
Bitcoin briefly surged above $113,000 earlier in the week but quickly retraced below $110,000, trading at $108,864 at the time of writing. Bitfinex analysts noted that the ETF market’s performance is mirroring broader financial market trends, with institutional interest directly affecting Bitcoin price stability.
“This $107K–$108K zone may act as a warning signal for a more prolonged consolidation period if ETF inflows do not recover meaningfully,” analysts said. They added that continued weakness in institutional participation could undermine one of the primary drivers of previous rallies: consistent accumulation by large investors.
Historical Context of ETF-Driven Demand
Historically, institutional participation in Bitcoin ETFs has been a key factor in major price movements. ETFs allow institutions to gain regulated exposure to Bitcoin, increasing market liquidity and confidence. However, with inflows stagnating, Bitcoin’s reliance on retail and speculative trading could leave it more exposed to volatility.
Even with these pressures, market watchers remain cautiously optimistic. Some analysts, such as BitMine chair Tom Lee and BitMEX co-founder Arthur Hayes, continue to forecast that Bitcoin could reach $250,000 by year-end if institutional support returns and market sentiment improves.
Diverging Views Among Analysts
Not all experts share the same level of optimism. Galaxy Digital CEO Mike Novogratz cautioned that a Bitcoin price surge to $250,000 by year-end would require “crazy stuff” to happen, pointing to macroeconomic uncertainties and market volatility.
In a worst-case scenario, Novogratz suggested that Bitcoin should still hold above $100,000 this year, a key psychological level that has historically acted as both support and a benchmark for market confidence. Even if ETFs fail to drive immediate gains, he noted that Bitcoin’s long-term fundamentals remain strong, and institutional interest may resume once market conditions stabilize.
What This Means for Traders
For traders, the current ETF apathy signals a need for caution. The $107K–$108K support zone is critical for near-term price stability. If Bitcoin dips below this level, it could trigger further consolidation or short-term corrections. Conversely, renewed ETF inflows could provide the boost needed to maintain upward momentum and prevent a broader sell-off.
Analysts suggest monitoring ETF net flows, institutional activity, and key technical indicators, such as the 50-week and 200-day moving averages, which historically serve as strong support levels during market corrections.
Outlook for the Rest of 2025
While short-term ETF apathy may weigh on Bitcoin’s price, many experts believe the cryptocurrency retains bullish potential for the remainder of 2025. Key factors include potential macroeconomic catalysts, regulatory developments, and resumption of institutional accumulation.
In conclusion, Bitcoin’s near-term trajectory will largely depend on the balance between ETF inflows and broader market sentiment. Traders and investors should remain vigilant around the $107K–$108K support level, watch institutional buying trends, and consider potential volatility as a natural feature of Bitcoin’s market cycles.
Post Views: 219
