By William Suberg

Bitcoin was a clear “buy” for institutions as BTC price action briefly dipped below $116,000 on Tuesday.

Data from onchain analytics firm Glassnode reveals that while BTC/USD retraced its latest gains, large-volume investors rushed in.

Institutions “didn’t flinch” as Bitcoin fell by $7,000

Bitcoin institutional investors are changing the way they react to snap BTC price moves.

As Glassnode shows, inflows into the US spot Bitcoin exchange-traded funds (ETFs) remain high this week, even after the price dropped over $7,000.

“Monday saw one of the largest daily inflows to US spot Bitcoin ETFs in the past 3 months (+7.5K $BTC),” it told X followers in a post on X Wednesday. 

“But what stands out is Tuesday’s response: institutions didn’t flinch - they doubled down, adding another +3.4K $BTC. Outflows remained near zero across the board.”

US spot Bitcoin ETF flows. Source: Glassnode/X

Such behavior stands out versus earlier in 2025 and last year, when sudden price corrections spawned instant ETF outflows. 

In late February, when BTC/USD dropped from near $100,000 to multimonth lows of $75,000, net outflows topped $3.2 billion over eight trading days, per data from UK investment firm Farside Investors. This included the largest-ever daily net outflow of over $1.1 billion.

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

BTC price can reach $135,000 thanks to ETFs

With demand returning, so too is optimism over institutional impact on BTC price strength.

Related: BTC price in 'crisis mode' at $123K: 5 things to know in Bitcoin this week

“US Bitcoin ETFs are buying Bitcoin faster than the protocol can produce it,” network economist Timothy Peterson calculated in an X thread on the topic last weekend.  

“Bitcoin's digital scarcity limits supply production to a fixed amount, which is halved every 4 years. A net -343,000 Bitcoin deficit has resulted from US Bitcoin ETF acquisitions, representing about $40 billion in today's value.”

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

Peterson forecast that, depending on future inflows, BTC/USD could rise by another $18,000 by the end of the year, “assuming steady demand and no significant supply increases (e.g., from miners or holders).”

“Over 6 months, this could push the price to ~$130,000–$135,000, barring major market shifts,” he concluded, noting that the numbers represent a “simplified projection.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.