Bitcoin stands at a crossroads as bulls cling to $90k support. With a minor drop in selling pressure, will a rise in Bitcoin and Ethereum ETFs inflows bring the crypto market back on bullish tracks?
By Vishal Dixit
Edited by Marco T. Lanz
Updated
3 mins read
With the total crypto market cap bouncing back at $3.08 trillion after momentarily creating a 24-hour low at $2.81 trillion, the crypto market is gradually stabilizing. Furthermore, market analysts are starting to hint at a potential bottom, with the upcoming institutional flows as the key determining factor.
With Bitcoin and Ethereum ETF inflows becoming a key trendsetter in the crypto market, a surge in inflows today could likely drive a V-shaped reversal in the broader market. However, if the rising fear seeps into institutions, a major dump could potentially extend the market crash.
In January 2025, the BTC $93 887 24h volatility: 0.4% Market cap: $1.86 T Vol. 24h: $15.10 B price rose by 9.67%, marking a significant recovery after dropping near $93,000 in late December. During the same period, US spot Bitcoin ETFs acquired approximately 45.1K BTC.
Compared to the 45.6K BTC inflows in December, the hype drove both the inflows and the BTC price in January. BlackRock remained the biggest Bitcoin buyer, accumulating 26.1K BTC, while Fidelity secured the second spot with 12.4K BTC acquired in January 2025.
Grayscale, however, continued to experience outflows, recording negative 4K BTC. Other funds, including Bitwise and ARK, purchased 3.1K BTC.
Compared to Bitcoin, Ethereum ETFs had a significant run over the past few months. Ethereum ETF inflows stood at $81.69 million, marking a significant slowdown compared to the $2,103 million inflows in December 2024.
However, despite the significant inflows in Ethereum ETFs, the ETH $1 795 24h volatility: 0.3% Market cap: $216.63 B Vol. 24h: $9.71 B price recorded a drop of 10.15% in December 2024. While institutional pools seem to have a lower impact on a larger timeframe, institutional pushes still remain key drivers in Bitcoin and Ethereum price trends.
As institutions are likely to maintain the ongoing trend, ignoring short-term volatility due to the surge in tariffs, Bitcoin remains at a crucial level. In a recent tweet by Martinez Ali, an independent crypto analyst, Bitcoin is testing one of its most crucial levels at $92,180.
Using the MVRV Extreme Deviation price band, Martinez highlights crucial support from this band. If the BTC price breaks below this level, a potential downfall to $74,700 will likely arise on bearish radars.
Currently, Bitcoin is back at $98,540 marking an intraday gain of 0.76%. As the BTC price marks a significant lower price rejection, the Bitcoin and Ethereum ETFs will play a pivotal role. A surge in ETF purchases may fuel a V-shaped recovery as BTC price bounces off from its key support at $92,180.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
