Instiutions Pile Into Bitcoin ETFs Despite $7K Price Drop — $135K in Sight?

Institutions Buy the Dip as Bitcoin Falls $7K from ATH

Bitcoin’s recent price correction didn’t scare big players — in fact, it had the opposite effect. While BTC briefly dipped below $116,000 on Tuesday after touching new all-time highs, institutional investors doubled down, adding nearly 11,000 BTC in just two days through U.S. spot Bitcoin ETFs.

According to on-chain analytics firm Glassnode, Monday marked one of the largest daily inflows into U.S. spot Bitcoin ETFs in the past three months, with +7,500 BTC entering funds. Remarkably, the buying spree continued on Tuesday, with another +3,400 BTC added, while ETF outflows stayed near zero.

“Institutions didn’t flinch — they doubled down,” Glassnode emphasized in a recent update on X.

US spot Bitcoin ETF flows. Source: Glassnode/X

Related: Bitcoin Correction ‘Increasingly Unlikely,’ Says 21Shares Amid Historic Supply Crunch

Behavior Shift: From Panic Selling to Aggressive Accumulation

This aggressive buying contrasts sharply with past reactions to sharp BTC pullbacks. Earlier in 2025, during a correction from near $100K to $75K, ETFs recorded $3.2 billion in net outflows over eight days, including a record $1.1 billion daily outflow, according to Farside Investors.

Today, the narrative is different. ETF inflows suggest that institutional confidence in Bitcoin remains strong, even as short-term volatility persists.

US spot Bitcoin ETF netflows for February 2025 (screenshot). Source: Farside Investors

ETF Demand Outpaces Bitcoin Supply

The renewed surge in ETF buying is creating structural supply pressure. As noted by Timothy Peterson, a network economist, U.S. Bitcoin ETFs are accumulating BTC faster than miners can produce it, resulting in an estimated deficit of 343,000 BTC — roughly $40 billion in value at current prices.

This dynamic underscores Bitcoin’s digital scarcity, which caps supply at a fixed issuance rate halving every four years.

Price Projection: $135,000 Within Six Months?

Based on current demand trends, Peterson projects that Bitcoin could see another $18,000 increase by year-end, assuming stable ETF inflows and no significant new supply entering the market. His six-month forecast places Bitcoin between $130,000 and $135,000, barring major macroeconomic disruptions.

“ETF demand is becoming the dominant force in Bitcoin price action,” Peterson concluded.

Monthly mined BTC vs. ETF acquisitions. Source: Timothy Peterson/X

Related: Cathie Wood: Crypto ETFs Will Stay Strong Despite Wallet Rise

Key Takeaways

• Institutions added 11,000 BTC in two days as prices dipped below $116K.

• ETF inflows hit multi-month highs, signaling strong confidence.

• Supply crunch intensifies as ETF demand exceeds miner production.

• Analysts predict $135K Bitcoin by early 2026 if trends continue.