ETF outflows in February and March triggered sharp Bitcoin price drops, while April’s inflows fueled a strong price recovery, according to The Crypto Information.
From January to May, ETF flows and Bitcoin price moved in sync, confirming ETF demand as a key driver of market momentum. As per The Crypto Information, Bitcoin US Spot ETF net flows have seen a dramatic cooldown from late April highs. Inflows dropped from $2.72 billion to just $277 million. This shift comes amid strong Bitcoin price movements, highlighting the close correlation between ETF demand and market sentiment.
January: Optimism and Surging Inflows
January began with a wave of optimism. According to The Crypto Information, substantial inflows peaked at $2.3 billion on January 20, as Bitcoin hovered near $100,000. Besides that, moderate inflows between $200–500 million continued through early February. This early momentum marked the first phase of bullish enthusiasm among investors.
February–March Sell-Off Pressures Price
However, sentiment turned sharply in mid-February. As reported by The Crypto Information, February 17 recorded outflows of around $750 million. Just a week later, on February 24, outflows surged to $2.7 billion. Bitcoin’s price plummeted from $92,500 to $80,000. This period marked heavy distribution and weakening investor confidence.
Moreover, March brought more volatility. A steep $1.4 billion outflow occurred on March 10. Bitcoin then dipped further, bottoming out near $78,000 by the month’s end. The price action formed a double-bottom pattern, suggesting possible accumulation. Still, ETF flows stayed mostly negative, noted The Crypto Information.
April Brings a Bullish Reversal
April marked a clear turning point. On April 21, inflows surged to $2.7 billion, the largest during the observed period. Bitcoin reacted strongly, climbing from $85,000 to $93,000 in response. Additionally, sustained inflows above $1 billion followed in late April and early May, according to The Crypto Information.
Besides the capital influx, investor confidence seemed to return. Bitcoin’s price rose steadily through early May, reaching over $105,000. This marks a 23% gain in under a month. The latest data from May 12, shared by The Crypto Information, still shows inflows, albeit smaller at $250 million.
Price and Flows Remain Closely Linked
Throughout the five-month span, Bitcoin’s price and ETF flows have moved in tandem. Bullish inflows sparked rallies, while outflows drove sharp corrections. Hence, investor appetite for ETFs continues to be a powerful market driver, confirms The Crypto Information.
The period from January to May 2025 reveals three phases—early optimism, mid-term bearishness, and renewed bullish momentum. ETF net flows remain a strong indicator of broader sentiment and capital rotation within the Bitcoin market, as outlined by The Crypto Information.
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