Bitcoin Stuck Below $80,000 as ETF Inflows Fail to Spark Breakout

Despite a strong week of inflows into US spot Bitcoin ETFs, the price of Bitcoin remains below $80,000. Last week, these funds attracted $986.9 million in new capital, bringing their total to about $3.8 billion over three weeks.

This influx is largely driven by institutions steadily rebuilding their exposure to the cryptocurrency, as seen in sustained ETF inflows creating 'genuine spot demand' rather than speculation. However, strong inflows do not guarantee a price move, as Bitcoin trades in a much larger market where ETF creations are only one source of marginal demand.

According to Glassnode data, there is approximately $47 billion worth of potentially profitable supply sitting in profit around current levels, with about 600,000 more Bitcoin than in May. Additionally, about 1.05 million BTC are concentrated between $83,000 and $86,000, where long-term holders may become willing sellers as they approach breakeven.

The cryptocurrency's rally has run into a 'defined population of sellers,' with spot demand having to absorb overhead supply around the $77,100 to $80,000 region. This dynamic explains why billions of dollars of institutional demand can produce consolidation rather than an immediate vertical move.