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Bitcoin News: Bitcoin nears $100K as institutional ETF demand reshapes market cycle
Bitcoin’s latest rally toward the $100,000 milestone is being driven less by speculative leverage and more by renewed institutional demand, as sustained inflows into U.S. spot Bitcoin ETFs push prices back toward cycle highs.
Bitcoin reclaimed levels above $97,000 this week, supported by a steady return of capital into U.S. spot Bitcoin exchange-traded funds. Market participants say the trend signals a potential structural shift in demand after months of range-bound trading.
ETF inflows underpin Bitcoin’s move higher
Since the start of the year, U.S. spot Bitcoin ETFs have attracted nearly $1.5 billion in net inflows, according to data cited by Eric Balchunas, senior ETF analyst at Bloomberg.
One day alone accounted for $843.6 million in net inflows, pushing weekly inflows to roughly $1.07 billion. While single-day spikes grabbed headlines, analysts say the more important signal is the consistency of demand returning after subdued flows late last year.
Balchunas noted on X that the pattern “suggests that maybe the buyers have exhausted the sellers,” pointing to Bitcoin’s breakout from its prolonged consolidation around the $88,000 zone.
At the time of writing, Bitcoin is trading near $97,000, holding gains that many traders now see as ETF-supported rather than momentum-driven.
Is institutional demand changing Bitcoin’s cycle?
Bitcoin’s rebound comes during a phase that has historically been challenging for the asset. Previous four-year cycles — loosely aligned with Bitcoin halving events — typically peaked 12–18 months after supply reductions, leading some analysts to argue that Bitcoin may already be past its cyclical high.
However, the persistence of ETF inflows is raising questions about whether institutional accumulation is weakening the relevance of past cycles.
In 2025, Bitcoin reached new all-time highs but failed to generate a sustained rally across the broader crypto market. Altcoins underperformed, and the long-anticipated “altcoin season” never fully materialized, dampening retail enthusiasm.
According to crypto market maker Wintermute, a broader recovery heading into 2026 may depend on whether ETF issuers and corporate digital asset treasury firms continue to accumulate Bitcoin — or expand their mandates beyond BTC.
Retail absence leaves institutions in the driver’s seat
Wintermute’s analysis highlights another key dynamic: retail investors largely stayed on the sidelines in 2025. Instead of rotating back into crypto, many pursued alternative growth themes such as artificial intelligence, robotics and space-related equities.
Without strong retail participation, Bitcoin’s current rally appears increasingly institution-led, relying on balance-sheet buyers, ETF allocators and long-term capital rather than speculative inflows.
Wintermute added that for a broader crypto recovery to take hold, Bitcoin and other major assets may need to post stronger and more consistent performance, creating a wealth effect that eventually pulls retail capital back into the market.
What comes next for Bitcoin
With Bitcoin now hovering just below the psychologically important $100,000 level, the focus has shifted to whether ETF inflows can remain resilient — and whether institutional demand alone is sufficient to sustain a breakout.
If inflows persist, analysts say Bitcoin’s price behavior in 2026 may look increasingly different from prior cycles, with structural demand replacing speculative excess as the primary driver of market moves.