Bitcoin Price Rebounds Amid ETF Outflows: Could $100,000 Be Next?

Bitcoin (BTC) recently experienced a dip below $92,000, marking its lowest level in December. Despite this temporary setback, the broader bullish sentiment around BTC remains intact. The drop was largely attributed to significant capital outflows—totaling $276 million—from U.S.-based bitcoin exchange-traded funds (ETFs).

Data from SosoValue shows that among the major ETFs, only the Grayscale Bitcoin Mini Trust (BTC) and Franklin Templeton Digital Holdings Trust (EZBC) reported inflows of $6.4 million and $5.6 million, respectively. Conversely, substantial outflows were recorded by ARK 21Shares Bitcoin ETF (ARKB) with $87 million, iShares Bitcoin Trust (IBIT) with $72 million, Fidelity Wise Origin Bitcoin Fund (FBTC) with $71 million, and Grayscale Bitcoin Trust (GBTC) with $57 million. Other funds reported neither inflows nor outflows. Since their inception, bitcoin ETFs have collectively amassed over $36 billion in market activity.

This wave of ETF outflows directly impacted BTC's price, which briefly dipped but has since recovered to $97,000. Historical data from TradingView reveals a gradual recovery pattern, underlining bitcoin's resilience in turbulent market conditions.

The link between ETF performance and BTC price is straightforward. As explained by Criptopedia, the educational division of BitcoinDynamic, ETF managers are required to hold bitcoin in their reserves to back their shares. This limits the supply of BTC in the broader market, creating upward pressure on its price in line with the principles of supply and demand.

Despite the recent price fluctuations, the long-term outlook for bitcoin remains optimistic. Scott Melker, known as "The Wolf of All Streets," highlighted that price corrections of 10% to 25% are normal in a bull market. "These pullbacks may test patience, but they are a natural part of market cycles and not a cause for panic," he explained.

Investment firm Bitcoin Suisse shares this optimism, maintaining a bullish forecast for the cryptocurrency. "Our models indicate that bitcoin could reach peak cycle valuations between $180,000 and $200,000 by 2025," the firm noted.

As BTC continues its recovery, market observers and investors alike are keeping a close eye on its performance, particularly the potential to retest and surpass the $100,000 milestone.