Bitcoin ETFs Surged Last Week, But What’s Next With Economic Events In Line?

Key Insights:

• Bitcoin ETFs attracted $1.76B, boosting BTC’s price to over $109K.
• Analysts warn of potential sell-offs if Bitcoin breaks key support levels.
• Upcoming economic events like Fed decisions and GDP data could impact market volatility.

Last week, Bitcoin ETFs experienced a remarkable surge in inflows. Data from SoSo Value revealed that from January 21 to 24, 2025, it attracted a staggering $1.76 Billion.

This influx of capital coincided with a post-inauguration rally, propelling Bitcoin price to over $109,000. In stark contrast, Ethereum ETF inflows remained at lowest during this period.

However, as the new week began on January 27, concerns over scheduled economic events and rising inflows on exchanges led to a downturn. Bitcoin price dropped by 6.6%, and other altcoins followed suit, with XRP experiencing a significant 14% decline.

While the ETF data for Monday is yet to be released, early indications suggest a potential outflow from Bitcoin ETFs, despite last week’s impressive performance.

Investors are understandably spooked, and many are eager to see what unfolds in President Donald Trump’s second week as President.

Why Bitcoin Price Reaching $109K Linked to Donald Trump & Bitcoin ETF?

As it is evident that the President Donald Trump’s second term began with a historic week for Bitcoin ETF. As these funds attracted a remarkable $1.76 Billion in investments.

In this week’s inflow, the lead contributor to this surge was BlackRock’s Bitcoin ETF (IBIT), which alone brought in an impressive $1.32 Billion. This brings IBIT’s total historical net inflows to $39.73 Billion, further solidifying its dominance in the market.

Following closely was Fidelity’s BTC ETF (FBTC), which saw an additional $202 Million in inflows, raising its cumulative total to $13.04 Billion.

Bitcoin ETF Madness Continues

However, not all Bitcoin ETFs enjoyed the same success. Grayscale’s Bitcoin Trust (GBTC) experienced the largest net outflows, losing $97.87 Million in capital.

In contrast, BlackRock’s and Fidelity’s regulated spot ETFs have emerged as the most popular options in the market.

Currently, the total net asset value of Bitcoin ETFs stands at $123.06 Billion, representing 5.92% of Bitcoin’s overall market cap.

These ETFs have become an increasingly vital component of the cryptocurrency investment landscape, with cumulative net inflows on the brink of flipping $40 Billion.

This influx has directly contributed to Bitcoin price rally, pushing it above $109,000, as institutional investors increasingly view Bitcoin as a hedge against inflation and economic instability.

That is why the demand for ETFs that offer exposure to the asset without the complexities of direct ownership is likely to continue growing.

In contrast, Ethereum ETFs have not experienced the same level of enthusiasm. During the same period, Ethereum ETFs garnered only $139.4 Million in net inflows.

Despite being the second-largest cryptocurrency by market cap, Ethereum has struggled to attract institutional interest comparable to Bitcoin.

Ethereum’s price remains 27% below its all-time high, and the sentiment surrounding investment in the asset has been lukewarm. The lack of enthusiasm can be attributed, at least in part, to Ethereum’s slower price recovery, which has left many investors cautious.

Prior to Scheduled Economic Events, Worried Investors DUmping Bitcoin

When writing, Bitcoin price took a hit, dropping approximately 6.6% and resulting in over $240 Million in long positions being liquidated within just 24 hours.

This selloff caused Bitcoin to lose its grip on the $2 Trillion market cap level, with rising exchange inflows and likely significant outflows on monday from Bitcoin ETFs contributing to the downturn.

Moreover, this could only be just a start, as there’s more to see this week. This week is packed with scheduled economic events that could reshape the crypto market landscape. The most significant event is set for Wednesday when the Federal Reserve will make its decision.

Many analysts predict that officials will keep interest rates unchanged, but Fed Chair Jerome Powell’s subsequent speech could be a major market mover.

Based on historical reactions, whenever, lower interest rates announced, it typically enhances liquidity in the crypto market by making money more accessible. Meanwhile, an increase in rates can dampen optimism due to tighter liquidity.

On Thursday, the preliminary GDP data for the U.S. economy will be released, followed by the Fed’s preferred inflation measure, known as the core personal consumption expenditures index (COre PCE) on Friday. With such impactful events on the horizon, the potential for volatility in the market also remains high.

How this Week is Crucial For Bitcoin Price

Despite the global optimism surrounding Bitcoin’s future and the anticipated pro-crypto policies that could drive institutional and government adoption, still concerns remain.

As Major experts, including those from VanEck, support this optimistic outlook. However, if the market moves in an unexpected direction, a sell-off could become worrisome.

As of now, Bitcoin price is hovering near the 50-day EMA band. A break below this level could heighten fears of further declines, with some analysts suggesting that the price might even test the 200-day EMA band.

Also, an investor, Arthur Hayes, co-founder of BitMEX, has also expressed a bearish sentiment, predicting a significant short-term pullback for Bitcoin. He suggests that prices could drop to between $70,000 and $75,000, potentially triggering a small financial crisis.

Given these uncertainties, investors and enthusiasts should exercise caution. It’s crucial to avoid falling into the trap of FOMO and to conduct thorough research (DYOR) before committing to large leveraged positions.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.