Strong ETF, Spot Demand Keep Bitcoin Afloat—But for How Long?

Bitcoin is seeing strong spot and and macro pressure, a setup that Bitfinex analysts call healthy.Spot Demand Keeps BTC Rally HealthyBitcoin gained roughly 25% in August and more than 40% from its bear market low, briefly reaching $81,500 before Fed Chair Kevin Warsh’s pushed it back below $77,000.Despite rising September rate hike expectations, Bitcoin maintains a bullish structure.Bitfinex reported on Aug. 31 that Bitcoin’s rally appears increasingly spot-driven rather than fueled by leverage.Open interest has risen gradually to $55.6 billion while futures basis remains contained, even after the Aug. 19 record short squeeze.U.S. spot Bitcoin ETFs recorded $924.5 million in net inflows last week, despite $201.9 million in Friday outflows following Warsh’s comments.Over two weeks, the , with last week’s inflows absorbing nearly four times the amount of newly issued Bitcoin.Institutional Demand Absorbs Crypto SupplyInstitutional buying continues to support both Bitcoin and Ethereum .Custodial addresses added roughly 59,100 BTC since late June as large whales sold about 50,500 BTC, suggesting ETF and institutional demand is absorbing profit-taking.Meanwhile, Ethereum products attracted $815.7 million last week, with ETF demand relative to market size running roughly four times stronger than Bitcoin’s.Image: Shutterstock