Oh dear, Bitcoin (BTC) has seen a rather large outflow of $651 million from US spot exchange-traded funds (ETFs) since Feb. 10. One might wonder if this is a sign of a potential price crash. If this trend continues, the spot Bitcoin ETF market could shrink by approximately $1.65 billion. But fear not, Bitcoin managed to push above $98,000 on Feb. 14, suggesting that bullish momentum is not entirely reliant on institutional investors.
Several companies, including Strategy (formerly MicroStrategy), Metaplanet, and KULR Technology, have increased their Bitcoin reserves. Even traditional financial institutions, such as Italy’s Intesa Sanpaolo, have recently added Bitcoin to their holdings. Additionally, the supply held by addresses with less than 1 BTC has been steadily increasing.
Wallets typically associated with retail investors—holding between 0.1 and 1 BTC—added over $80 million worth of Bitcoin between Feb. 3 and Feb. 13, reversing a two-week downtrend. This data further supports the notion that buying pressure is not coming exclusively from institutional investors.
Investor sentiment has been bolstered by strong corporate earnings, with the S&P 500 index trading within 0.5% of its all-time high. Notable examples include Exxon’s 10% year-over-year quarterly earnings growth, JPMorgan’s 12% increase in profits, and UnitedHealth’s 15% rise in quarterly earnings.
It is important to note that even a modest 2% gain in the S&P 500 translates into a $1 trillion increase in market capitalization. As a result, a small reallocation of capital from equities to Bitcoin could propel the cryptocurrency’s price above $105,000. Furthermore, concerns over corporate profitability are rising due to the ongoing global tariff war, increasing the appeal of uncorrelated assets like Bitcoin.
Ultimately, the continued ETF outflows should be viewed as a bullish sign, considering Bitcoin has remained above $95,000 despite selling pressure. Additionally, deteriorating macroeconomic conditions and rising uncertainty in traditional markets could push investors to seek alternative assets, including Bitcoin.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of CryptoMoon.
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2025-02-14 23:18