As Bitcoin briefly dropped under the $116,000 mark on Tuesday, institutional investors took the opportunity to buy more — signaling strong confidence in BTC’s long-term trajectory.
Blockchain data from analytics provider Glassnode showed that while BTC/USD experienced a $7,000 pullback, large-scale buyers wasted no time increasing their holdings.
No Panic from Institutions as BTC Dips
Unlike in previous cycles, this time institutional behavior has shown notable resilience. Inflows into U.S. spot Bitcoin ETFs remained robust throughout the week despite the market correction.
“Monday saw one of the top three daily net inflows into U.S. spot Bitcoin ETFs in the last quarter, with over 7,500 BTC added,” Glassnode posted on X. “But even more striking was Tuesday — rather than pull back, institutions committed further, acquiring another 3,400 BTC. Outflows were minimal across the board.”
This is a sharp contrast to reactions seen earlier this year and in 2024. For example, when Bitcoin fell from $100,000 to $75,000 in February, ETF investors pulled out over $3.2 billion within just eight trading sessions. That period also recorded the single largest daily outflow ever, surpassing $1.1 billion.
ETF Demand Could Drive BTC to $135K
With institutional appetite back in focus, bullish projections are gaining momentum once again.
According to economist Timothy Peterson, the consistent pace of ETF buying is surpassing Bitcoin’s rate of new supply. “The U.S. Bitcoin ETFs are now accumulating BTC faster than the network can mint it,” he wrote on X, referencing the protocol’s fixed issuance schedule and scarcity model.
He estimated that this growing demand has already created a net supply gap of around 343,000 BTC — worth roughly $40 billion at today’s prices.
Peterson predicts that if this trend holds, Bitcoin could climb by another $18,000 by year-end. “Assuming demand remains steady and no large-scale supply shocks occur, we could see prices reaching around $130K to $135K within six months,” he said, while clarifying that the forecast is based on a simplified model.
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