- Bitcoin ETF inflows soared in January and April but plunged during February–March sell-offs, mirroring investor sentiment shifts.
- ETF outflows in February and March triggered sharp Bitcoin price drops, while April’s inflows fueled a strong price recovery.
- From January to May, ETF flows and Bitcoin price moved in sync, confirming ETF demand as a key driver of market momentum.
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 began with a wave of optimism. 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. 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.
Source: Ali
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.
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.
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 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.
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.
