Spot and ETF inflows support BTC as whales sell, analysts say

Bitcoin (CRYPTO: BTC) is seeing strong spot and ETF demand absorbing whale selling and macro pressure, a setup that Bitfinex analysts call healthy.

Spot Demand Keeps BTC Rally Healthy Bitcoin gained roughly 25% in August and more than 40% from its bear market low, briefly reaching $81,500 before Fed Chair Kevin Warsh’s hawkish comments pushed it back below $77,000.

Despite rising September rate hike expectations, Bitcoin maintains a bullish structure.

Bitfinex reported on Aug.

31 that Bitcoin’s rally appears increasingly spot-driven rather than fueled by leverage.

Open interest has risen gradually to $55.6 billion while futures basis remains contained, even after the Aug.

19 record short squeeze.

U.S. spot Bitcoin ETFs recorded $924.5 million in net inflows last week, despite $201.9 million in Friday outflows following Warsh’s comments.

Over two weeks, the ETFs attracted roughly $2.8 billion, with last week’s inflows absorbing nearly four times the amount of newly issued Bitcoin.

Institutional Demand Absorbs Crypto Supply Institutional buying continues to support both Bitcoin and Ethereum (CRYPTO: ETH).

Custodial addresses added roughly 59,100 BTC since late June as large whales sold about 50,500 BTC, suggesting ETF and institutional demand is absorbing profit-taking.

Meanwhile, Ethereum products attracted $815.7 million last week, with ETF demand relative to market size running roughly four times stronger than Bitcoin’s.

Image: Shutterstock