Recent data from on-chain analytics firm Glassnode reveals that US Bitcoin spot exchange-traded funds (ETFs) have tipped into net outflows, indicating a cooling of the institutional buying frenzy that peaked in early September. This shift marks a slowdown in demand among large investors, as these ETFs serve as a preferred off-ramp for traditional traders seeking Bitcoin exposure without direct ownership. Approved by the SEC in January 2024, Bitcoin spot ETFs saw significant positive netflows earlier in the month but have recently turned slightly negative, correlating with a price plunge that has BTC trading around $113,300, down 2% over the past week.
Analytics firm Santiment reported a surge in social media volume for bearish Bitcoin price targets ($70,000-$100,000) exceeding bullish ones ($130,000-$160,000) post-drop, suggesting retail expectations of further declines. Historically, Bitcoin has often moved contrary to crowd sentiment, potentially setting the stage for a rebound. Meanwhile, specific flows show Spot Bitcoin ETFs attracted $241 million in inflows on Tuesday, but Ethereum ETFs experienced $79 million in outflows for a third straight day.
Bitcoin's price action has formed a double bottom at $111,115, with resistance at $113,000-$113,500 capping gains; higher lows hint at a budding uptrend. Ethereum trades precariously above $4,000, and reclaiming its accumulation zone is critical to avoid deeper losses. Macroeconomic backdrop includes a 20.5% monthly jump in US new home sales to 800,000, beating forecasts, and China's proposal to domesticate sovereign gold reserves. Wealth trends highlight a 40% annual rise in crypto millionaires to 241,700 globally, with 36 billionaires holding over $1 billion in digital assets.