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Key Takeaways:
- Institutions added 10,900 BTC over two days despite Bitcoin’s $7,000 dip, signaling long-term confidence.
- U.S. Bitcoin ETFs are accumulating more BTC than the network is producing, intensifying supply pressure.
- Analysts now project BTC could reach $135,000 by year-end if current trends hold.
As Bitcoin (BTC) briefly fell below $116,000 on Tuesday, institutional investors viewed the correction as a golden buying opportunity. According to new data from on-chain analytics firm Glassnode, institutional interest remains unfazed by price volatility, with U.S. spot Bitcoin ETFs seeing their strongest inflows in months.
Monday saw one of the largest daily inflows to US spot #Bitcoin ETFs in the past 3 months (+7.5K $BTC). 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. pic.twitter.com/PO1vaffWqH
— glassnode (@glassnode) July 16, 2025
Institutions Double Down Despite $7K Drop
Glassnode reports that U.S. spot Bitcoin ETFs saw a massive 7,500 BTC inflow on Monday, one of the largest daily spikes in the past three months. But even more noteworthy was Tuesday’s response—another 3,400 BTC added, with outflows staying near zero across all funds.
This resilience marks a shift from early 2025 trends, where sharp BTC corrections triggered rapid ETF redemptions. For example, a February plunge from $100,000 to $75,000 prompted $3.2 billion in outflows over eight days, including a record $1.1 billion in a single session.
ETF Demand Outpacing Bitcoin Supply
The aggressive buying suggests that institutional appetite may be reaching a new level. Timothy Peterson, a network economist, emphasized that U.S. Bitcoin ETFs are now accumulating BTC faster than the network can mine it.
US Bitcoin ETFs are buying Bitcoin faster than the protocol can produce it. Bitcoin's digital scarcity limits supply production to a fixed amount, which is halved every 4 years.
— Timothy Peterson (@nsquaredvalue) July 12, 2025
A net -343,000 Bitcoin deficit has resulted from US Bitcoin ETF acquisitions, representing about $40… pic.twitter.com/evrlXPrcnl
“Bitcoin’s digital scarcity limits supply production,” Peterson explained, noting that ETFs have created a 343,000 BTC supply deficit, equating to around $40 billion. This imbalance between demand and issuance is a critical driver behind bullish price forecasts.
Also Read: Vanguard Becomes Largest MicroStrategy Shareholder Despite Criticizing Bitcoin as Speculative
BTC Price Forecast Raised to $135,000
Assuming ETF inflows remain steady and no major new supply floods the market from miners or dormant wallets, Peterson predicts BTC could climb to $130,000–$135,000 within the next six months.
The projection is based on a simplified supply-demand model but reflects growing market sentiment that institutional demand may continue to be the dominant force in price discovery.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
