Bitcoin ETF Inflows Support Recovery Despite Pullback

Bitcoin retreated about 1% from $85,000, but institutional demand continues to support its broader recovery. US spot Bitcoin ETFs recorded eight consecutive sessions of net inflows, attracting roughly $3 billion and nearly matching August’s total. Earlier inflows included about $999 million in one session, led by BlackRock’s IBIT, ARK 21Shares and Fidelity’s FBTC. Corporate accumulation also remains strong. Strategy bought another 950 BTC, taking its holdings to 846,000 BTC. Bitcoin has reclaimed the $82,000-$83,000 resistance area, but the next key test is the $80,000-$82,000 support zone. Holding that range could support a move back towards $85,000, followed by $88,000-$90,000 and potentially $100,000 over the longer term. Short-term momentum is less certain. The four-hour chart shows lower highs and lower lows, while futures open interest rose by about $2 billion and the rally triggered hundreds of millions of dollars in short liquidations. Rising leverage and profit-taking could amplify volatility. US inflation and growth data are the next major catalysts. Markets expect a 0.4% monthly increase in the August PCE price index and 1.5% annualised second-quarter GDP growth. Hotter inflation could strengthen expectations for tighter Federal Reserve policy and pressure Bitcoin, while softer data may support risk assets. FedWatch puts the implied probability of an October rate increase at 68%. Sustained ETF inflows remain bullish, but weaker demand or negative macroeconomic surprises could interrupt Bitcoin’s recovery.