Bitcoin Slips to $107K Despite $1B ETF Inflows—Here’s What’s Really Behind the Drop

Bitcoin Pulls Back Despite Bullish ETF Flows

Bitcoin briefly dropped to $107,400 on Friday, even as spot Bitcoin ETFs saw $1 billion in net inflows over the past two days. The decline follows a rejection near $110,500 on Thursday, highlighting growing unease in the market.

At the time of writing, BTC trades near $108,077, down 2.8% over 24 hours. The pullback comes as a surprise to many, given the strength of institutional interest, but analysts say broader economic concerns are outweighing crypto-specific catalysts.

pot Bitcoin ETF net flows, US$. Source: CoinGlass

Dormant Whale Moves 80,000 BTC, Rattles Traders

One of the most discussed events driving short-term fear was the sudden reactivation of a dormant Bitcoin wallet from 2011, which transferred 80,009 BTC—worth roughly $4.3 billion.

On-chain analysts believe the wallet may belong to an early miner, possibly one of Bitcoin’s original participants. While this has triggered speculation about a major sale, most experts suggest it’s unlikely. Such a large movement would likely be split across time to avoid market impact if liquidation was the goal.

Still, the psychological effect of large dormant wallet activity tends to ignite fear, uncertainty, and doubt (FUD)—even when no selling occurs. Historical examples support this:

May 2025: 3,420 BTC moved from 2013-era wallets

November 2024: 2,000 BTC moved after 14 years

March 2024: 1,000 BTC moved from inactive addresses

November 2023: 6,500 BTC reawakened

None of these led to sustained selloffs, but they often coincide with short-term volatility spikes.

Source: x/lookonchain

Macroeconomic Tensions Weigh on Risk Sentiment

Beyond crypto-specific news, broader macroeconomic worries are dragging on investor confidence.

Key concerns include:

U.S. fiscal outlook: The government’s recent $3.4 trillion tax-cut-heavy fiscal package has raised red flags about rising deficit risks.

Global trade tensions: The Trump administration has issued notices to trading partners, signaling potential unilateral tariff hikes if no agreements are reached by the upcoming Wednesday deadline.

Investor caution: Michael Hartnett, Chief Investment Strategist at Bank of America, reportedly advised clients to reduce exposure if the S&P 500 nears 6,300, citing rising asset bubble risks.

These developments suggest that Bitcoin’s retreat is less about ETF flows or on-chain movement and more about investors reducing risk exposure in anticipation of potential market-wide volatility.

S gross federal debt, % of gross domestic product. Source: The Insider

Key BTC Price Levels to Watch

Bitcoin continues to trade within a tight consolidation range. On the downside, key support levels include $107,000 to $105,000, followed by psychological support at $103,800. On the upside, resistance is building between $110,500 and $112,000, with a breakout target for bulls set around $115,000.

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