Bitcoin has successfully maintained its value above $100,000 following a highly dynamic week. Institutional investors turning towards ETFs and significant investors aggressively accumulating point to a market regaining stability. Analysts note that panic selling has now given way to strategic positioning.
ETF Inflows and Whale Purchases Boost Market Confidence
In the US, spot Bitcoin ETFs recorded a $240 million inflow after a six-day streak of outflows. Increased interest was also seen in Ethereum and Solana ETFs, indicating a strengthened investor focus.
Timothy Misir, head of BRN Research, stated that with leveraged positions being cleared, the spot market has entered a new phase of accumulation. He highlighted that approximately 30,000 BTC were bought by whales during recent declines, with long-term investors maintaining control to bolster the market’s structural resilience.
Mixed macroeconomic data fed cautious optimism. In October, layoffs in the US surpassed 153,000, reaching record levels since 2003. Nevertheless, QCP Capital highlighted robust GDP data and easing employment figures, suggesting balanced growth. The likelihood of the Fed taking another step in December after its October rate cut stands at 60%. Easing US-China relations and reinitiated repo operations have also alleviated the squeeze on dollar liquidity.
Capital Rotation Continues
According to FalconX data, investors are reorganizing their positions rather than exiting the market entirely. Griffin Sears, head of derivative products at the company, noted that ETFs are reducing altcoin positions to shift towards Bitcoin and Ethereum. This trend is expected to bolster Bitcoin’s dominance.
Bitcoin is currently trading around $101,500, with Ethereum at $3,340, BNB at $955, and Solana at $155. On-chain data supports recovery signals with 71% of Bitcoin supply still in profit and a continued decline in BTC balances on exchanges.
Analyst expectations are cautious in the short term, but the overall trend remains positive. Galaxy Digital revised its year-end target from $185,000 to $120,000, and Ark Invest adjusted its forecast down by $300,000. JPMorgan predicts Bitcoin could reach $170,000 within the next 6-12 months.