Key Insights:
- Bitcoin rebounds from $107K as US spot ETF inflows return.
- ETF demand stays mild, under 1K BTC daily inflow rate.
- Prior rallies saw inflows above 2.5K BTC each day.
- Market recovery is steady but weaker than past surges.
Bitcoin’s recent rebound from the $107,000 level coincided with a shift in US spot Bitcoin exchange-traded fund (ETF) flows, which have turned positive after a period of net outflows. According to on-chain and market data, the renewed inflows signal a gradual return of investor confidence following weeks of reduced activity in the ETF market.
This being a positive territory, daily inflows remain modest at under 1,000 BTC per day. This figure is considerably below the more than 2,500 BTC per day recorded at the start of major rallies earlier in the current market cycle. Analysts note that while investor sentiment has improved, the volume of new capital entering the market is still restrained compared to previous bullish phases.
The ETF positive flows suggest that institutional demand is stabilizing after a slowdown. However, the lack of strong inflow momentum indicates that investors remain cautious amid broader market uncertainty. Bitcoin’s ability to sustain its recent gains may depend on whether inflows accelerate in the coming weeks.
Institutional Demand Shows Signs of Gradual Recovery
The rebound in spot ETF activity reflects early signs of renewed institutional participation. Several funds, including those managed by leading asset issuers, have reported small but consistent inflows following a brief period of stagnation. These movements have contributed to Bitcoin’s stabilization near the $107,000 mark.
The bounce from $107k coincided with US Spot ETF netflows turning positive. However, inflows remain <1k BTC/day, significantly lower than >2.5k BTC/day seen at the start of major rallies this cycle.
Demand is recovering, but not at the intensity of recent rallies.
— glassnode (@glassnode) October 29, 2025
Market participants attribute the subdued inflows to a combination of macroeconomic factors and investor caution. Uncertain interest rate expectations and shifting liquidity conditions have limited aggressive accumulation by institutions. Additionally, broader crypto market consolidation has prompted investors to adopt a more measured approach, focusing on long-term positioning rather than short-term speculation.
Although inflows have not yet reached previous rally levels, the shift to positive net flows indicates a gradual improvement in sentiment. If inflows are sustained or increase, it could support a stronger upward trend and reinforce Bitcoin’s position above key technical thresholds.
Market Conditions Remain Cautious Despite Price Recovery
Bitcoin’s recovery from its recent low underscores the influence of ETF flows on market behavior. The asset’s price trajectory continues to correlate closely with institutional demand through spot ETF channels, making fund activity a critical indicator of momentum.
While the return of inflows marks a constructive development, current levels fall short of the intensity seen during earlier phases of the cycle. For sustained growth, the market may require renewed retail participation alongside stronger institutional inflows.
At present, Bitcoin remains supported by modest buying pressure and broader investor optimism. However, the pace of recovery appears slower than in previous rallies, highlighting the cautious stance of major market participants amid ongoing macroeconomic and regulatory developments.
