Key points:
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Bitcoin institutional buying is ignoring the latest BTC price dip, adding nearly 11,000 BTC over two days.
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Spot Bitcoin ETFs’ response to the latest market retracement contrasts with earlier this year.
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A new projection sees $135,000 within six months thanks to ETFs buying up Bitcoin.
Bitcoin (BTC) was a clear “buy” for institutions as BTC price action briefly dipped below $116,000 on Tuesday.
Data from onchain analytics firm Glassnode reveals that while BTC/USD retraced its latest gains, large-volume investors rushed in.
Institutions “didn’t flinch” as Bitcoin fell by $7,000
Bitcoin institutional investors are changing the way they react to snap BTC price moves.
As Glassnode shows, inflows into the US spot Bitcoin exchange-traded funds (ETFs) remain high this week, even after the price dropped over $7,000.
“Monday saw one of the largest daily inflows to US spot Bitcoin ETFs in the past 3 months (+7.5K $BTC),” it told X followers in a post on X Wednesday.
“But what stands out is Tuesday’s response: institutions didn’t flinch – they doubled down, adding another +3.4K $BTC. Outflows remained near zero across the board.”
Such behavior stands out versus earlier in 2025 and last year, when sudden price corrections spawned instant ETF outflows.
In late February, when BTC/USD dropped from near $100,000 to multimonth lows of $75,000, net outflows topped $3.2 billion over eight trading days, per data from UK investment firm Farside Investors. This included the largest-ever daily net outflow of over $1.1 billion.
BTC price can reach $135,000 thanks to ETFs
With demand returning, so too is optimism over institutional impact on BTC price strength.
Related: BTC price in ‘crisis mode’ at $123K: 5 things to know in Bitcoin this week
“US Bitcoin ETFs are buying Bitcoin faster than the protocol can produce it,” network economist Timothy Peterson calculated in an X thread on the topic last weekend.
“Bitcoin’s digital scarcity limits supply production to a fixed amount, which is halved every 4 years. A net -343,000 Bitcoin deficit has resulted from US Bitcoin ETF acquisitions, representing about $40 billion in today’s value.”
Peterson forecast that, depending on future inflows, BTC/USD could rise by another $18,000 by the end of the year, “assuming steady demand and no significant supply increases (e.g., from miners or holders).”
“Over 6 months, this could push the price to ~$130,000–$135,000, barring major market shifts,” he concluded, noting that the numbers represent a “simplified projection.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
