That interpretation is intuitive given that ETFs, which let investors gain exposure to the cryptocurrency without owning it directly, are widely seen as a cleaner crypto market gateway for institutions. As a result, positive ETF inflows are taken to mean BTC is receiving institutional support, while outflows suggest the opposite.
Bitcoin’s price too has stabilized between $64,000 and $65,000 lately, offering hope that a bottom may be in. Prices peaked above $126,000 in October last year.
On the surface, it looks like the tide has turned. However, there is a massive caveat that makes these ETF inflows look like statistical noise rather than a structural shift.
The peanuts reality check
The hype surrounding this $273 million inflow quickly evaporates when compared to the carnage of the preceding eight weeks. During that two-month outflow streak, the market watched billions of dollars walk out the door.
To put the current “recovery” in perspective: the total amount of money that has entered the market over the last 14 days ($273 million) is barely more than the smallest single-week outflow recorded during that eight-week slump, which was $226.84 million in the week ended June 18.
In other words, it took two full weeks of “renewed optimism” just to offset the quietest week of the recent sell-off.
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