A highly noteworthy phenomenon has appeared in the recent crypto market: as the price of Bitcoin has pulled back from its highs, leveraged long positions have been liquidated, yet U.S. spot Bitcoin ETF inflows have not withdrawn in sync.
At first glance, this seems contradictory. If the market is truly weakening, why are institutional funds still buying? If institutional funds are truly continuing to flow in, why is the price still falling? Understanding this question may be more important than guessing whether the next Bitcoin candlestick will be red or green. Because what the market is likely experiencing now is not simply “rising” or “falling,” but a repricing occurring among spot funds, ETF funds, and leverage in derivatives.