Bitcoin Drops Below $84K, But ETF Inflows Suggest Strong Demand

Bitcoin's price dropped below $84,000 on Thursday as investors took profits after its recent rally to a high of $87,395. However, it quickly recovered and is now trading above $84,200.

The decline was not unexpected, given the significant number of investors who used the rally to exit positions or reduce their exposure at higher prices. According to Santiment's Network Realized Profit/Loss metric, which measures the difference between the price at which coins last moved and their value when they are subsequently transferred, a large amount of BTC was sold at a profit during the rally.

Despite this, sustained exchange-traded fund inflows and accumulation by larger holders suggest that underlying demand remains strong. US spot Bitcoin ETFs attracted $190.65 million in net inflows on Thursday, marking the sixth consecutive day of positive flows beginning last week.