Analysts say the slowdown marks a mid-cycle pause, not the end of the bull run
Bitcoin ETF Inflows Lose Momentum Amid Government Developments
Optimism around the potential end of the 41-day US government shutdown failed to boost Bitcoin ETF demand, raising concerns about the cryptocurrency’s short-term outlook. Despite a positive shift in broader markets, including gains in the S&P 500 and gold, Bitcoin’s spot ETF inflows remained notably weak.
According to Farside Investors, spot Bitcoin ETFs recorded just $1.2 million in inflows on Monday, signaling stagnation after months of strong institutional participation. This lack of activity came even as the US Senate approved a funding package aimed at ending the prolonged shutdown, with the House of Representatives expected to finalize the vote this week.
Market experts view ETF flows as a primary indicator of institutional confidence. Charles Edwards, founder of Capriole Investments, cautioned that Bitcoin’s muted ETF demand contrasts with the typical post-shutdown rebound seen in risk assets.
“Despite the shutdown seemingly ending, and with traditional markets bouncing, Bitcoin ETFs saw no bid yesterday. This is not a dynamic we want to see continue,” Edwards said. “There’s still time to turn this ship around, but it needs to turn.”
Geoff Kendrick, head of digital assets research at Standard Chartered, recently emphasized that ETF inflows were the key force driving Bitcoin’s 2025 momentum. Notably, BlackRock’s Bitcoin fund remains the standout performer, attracting $28.1 billion in year-to-date inflows, while competing issuers collectively recorded minor outflows.
Analysts See Consolidation, Not Collapse
While some traders fear the bull market is fading, Bitfinex analysts interpret the current weakness as a “mid-cycle consolidation phase.”
“The current correction mirrors structures from June 2024 and February 2025 — periods when Bitcoin paused before resuming its rally,” the analysts noted.
They pointed out that each retracement since 2023 has averaged a 22% decline before reversal, suggesting this phase remains within historical norms. Even after Bitcoin’s pullback to $100,000, around 72% of total supply remains in profit, underscoring resilience in long-term holders.
Still, experts agree that a sustained recovery will require renewed demand from both institutional and retail investors. Until then, the market may continue to move sideways — consolidating before the next major uptrend.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.