US spot Bitcoin exchange-traded funds extended a tentative recovery last week and into early this week, as fresh inflows offered early signs that institutional demand may be stabilising after a prolonged period of heavy selling.
According to data from SoSoValue, spot Bitcoin ETFs attracted $371 million in net inflows last Friday.
The momentum continued on Monday, with a further $145 million added as Bitcoin traded near the $70,000 level.
Despite the improvement, the recent inflows have not yet reversed earlier losses.
Spot Bitcoin ETFs recorded $318 million in net outflows last week and around $1.9 billion in redemptions so far this year.
Bitcoin struggles to hold above $70,000
Even as ETF flows improved, Bitcoin has struggled to maintain upward momentum.
The cryptocurrency traded below $70,000 during Asian hours on Tuesday, once again failing to hold recent gains after rebounding from lows near $60,000.
In recent sessions, prices have largely ranged between $68,000 and $72,000, following a volatile week in which Bitcoin briefly fell to levels last seen in October 2024 before staging a relief rally.
The earlier decline was driven in part by liquidation-led selling, as leveraged positions were unwound during sharp price drops.
Market participants said the consolidation reflects ongoing uncertainty, with buyers hesitant to commit aggressively ahead of major macroeconomic events.
Focus turns to US data and Fed outlook
Investors’ attention has shifted toward upcoming US economic releases that could shape expectations for monetary policy.
The monthly jobs report from the Bureau of Labor Statistics, delayed by a brief government shutdown, is scheduled for release on Wednesday.
Later in the week, the US Consumer Price Index is due on Friday, providing an updated view on inflation trends.
Both reports are expected to influence market expectations around interest rate cuts and broader liquidity conditions, which have become increasingly important drivers of crypto prices.
Markets are also monitoring changes at the Federal Reserve following President Donald Trump’s nomination of Kevin Warsh as the next Fed chair.
Traders are assessing how a potentially more hawkish leadership stance could affect liquidity and speculative assets such as Bitcoin.
Bernstein maintains bullish long-term view
Despite near-term volatility, analysts at Bernstein continue to hold a constructive long-term outlook.
The firm reiterated its forecast for Bitcoin to reach $150,000 by the end of 2026, describing the current downturn as the least threatening in the asset’s trading history.
Analysts led by Gautam Chhugani said in a note on Monday that recent weakness reflects shifts in sentiment rather than fundamental deterioration.
They highlighted the absence of major leverage collapses, exchange failures, or systemic breakdowns that have characterised previous severe sell-offs.
Bernstein said institutional participation remains intact through spot ETFs, corporate treasury strategies and involvement from major asset managers.
The firm also addressed concerns about Bitcoin’s recent underperformance relative to gold, arguing that the cryptocurrency functions primarily as a liquidity-sensitive asset rather than a traditional safe haven.
Tight financial conditions, it said, have favoured precious metals and AI-related stocks, but improved liquidity could eventually support Bitcoin through ETF inflows and corporate fundraising activity.