ETF Bitcoin Needs to Be Maintained to Unlock the Full Potential of BTC in the Market

As witnessed last week, institutional flows into Bitcoin experienced significant volatility. After a net outflow exceeding $500 million at the beginning of the week, demand shifted back positively. This phenomenon reflects an important pattern to understand: Bitcoin ETF momentum is crucial for the sustainability of BTC price trends. Recent data shows BTC trading at $78.84K with a 24-hour decline of 5.17%, providing a more complex market picture beyond just numbers.

Bitcoin ETF Flows Reach Critical Momentum

Last week marked a historic moment when spot Bitcoin ETFs gathered over $457.3 million in a single day, the highest record in five weeks. This achievement should not be overlooked as it indicates a recovery in institutional confidence in the world’s largest digital asset. Comparing this to the early bullish phase of the year reveals that inflows above $500 million occurred almost weekly during that period, indicating market health.

Currently, Ethereum (ETH) is also experiencing similar dynamics with a price of $2.43K and an 8.43% 24-hour decline, while total ETH holdings via spot ETFs reach approximately 6.16 million. Net flows for ETH show a fluctuation of -$22.4 million in daily movements, indicating that Bitcoin remains more favored by institutions compared to other major altcoins during this period.

Market Movements Depend on Macro Economic Signals

Cryptocurrency remains locked within a relatively narrow trading range, reflecting traders’ caution ahead of upcoming global economic data. BNB is trading 1.8% lower at $779.90, while XRP shows a bearish trend with its price dropping to $1.66. Experienced traders like Peter Brandt have identified a double-top breakdown pattern on XRP, potentially leading to lower prices.

Market attention is currently focused on the Bank of Japan’s interest rate decision, expected to raise rates by 25 basis points to 0.75%. This decision could trigger a yen rally and broader risk aversion. On the other hand, Fed member Christopher Waller confirmed that interest rates remain well above the neutral level, opening opportunities for further cuts.

Technical Analysis Reveals Weakness in the Alternative Sector

DOGE (dogecoin) shows concerning technical signals on the weekly chart with a logarithmic candle format. The token has broken through a significant upward trend line from the lows of 2023 and 2024, indicating a possible end to the bullish phase. Further analysis suggests potential deeper losses in the coming weeks.

Contrasting with DOGE, privacy-focused tokens like Monero (XMR) and Zcash (ZEC) show resilience with a 2% increase in the last 24 hours. The CoinDesk 20 index fell 1%, while the CoinDesk 80 index declined 3.2%, indicating that weakness is more concentrated in tokens with smaller market capitalizations.

Crypto Ecosystem Continues to Grow with Community Events

The blockchain community remains active with various initiatives. BNB Chain hosts a year-end AMA session, creating opportunities for community engagement with industry leaders. IOTA will hold a Q&A session with Dominik Schiener, founder and chairman of the IOTA Foundation, while Cardano invites the CEO of Cardano Foundation and other ecosystem executives for in-depth discussions.

Bitcoin’s dominance remains strong at 59.97%, showing investor confidence in the most liquid asset in the crypto market. Bitcoin hashrate reaches 1,049 EH/s with a spot hash price of $37.29, indicating a stable network health status. Total transaction fees amount to 2.81 BTC or approximately $244,324, reflecting ongoing network activity.

Crypto Stocks and Treasury Companies Face Pressure

The crypto equity sector faces challenges with most stocks showing negative performance. Coinbase Global (COIN) declined 3.33%, Circle (CRCL) fell 4.58%, and Galaxy Digital (GLXY) dropped 6.17%. MicroStrategy (MSTR), known as the largest Bitcoin treasury company, closed down 4.25%, reflecting broader market pressure.

Bitcoin ETF data shows cumulative net inflows reaching $57.71 billion with total holdings around 1.3 million BTC. These figures ensure that Bitcoin ETFs remain the most significant institutional investment vehicles in the modern crypto ecosystem, reinforcing the argument that institutional fund flows through these structured instruments are vital for maintaining BTC momentum.

Bitcoin continues to fluctuate around established support-resistance levels, with traders awaiting clearer trend indications from upcoming macroeconomic data. The sustainability of Bitcoin’s rally directly depends on the ability of Bitcoin ETFs to continue attracting institutional capital flows, making this fund flow dynamic a key factor in future price movements.