BTC ETF has attracted more than $45 billion in capital inflows, with stable corporate allocation demand and growing institutional interest. Why is the BTC price consolidating under strong demand? It is necessary to analyze key indicators such as wallet behavior, liquidity trends and volatility compression. The shift of BTCs market dominance is undoubted.
Market narrative changes significantly, BTC mass adoption stagnates for the first time
Each round of BTC bull market is usually led by a new narrative logic, and attracted a large amount of buying under the instigation of a new group of evangelists, which eventually triggered a parabolic rise in prices. The market leaders have also changed dramatically: from early evangelists such as Bitcoin Jesus to Wall Street giants such as Larry Fink. However, this round of market is fundamentally different: mass adoption has stagnated for the first time, and the chips available for trading are being quickly absorbed by a small number of well-funded buyers.
It is undeniable that when the price of a single BTC exceeds the average selling price of a new car in the United States (about $45,000), many retail investors begin to feel that it is too expensive and even discourage it. This psychological barrier may be one of the reasons why the number of new wallet addresses has stagnated - BTC is now more regarded as a value storage tool rather than an asset for daily transactions, so more and more people choose to hold it for a long time rather than frequently transfer it.
The dominant market force has changed, but BTC ETF continues to attract money
The dominant force of BTC is shifting from super whales, early miners and long-term holders to whale-level institutional funds - such as BTC ETFs, corporate vaults and institutional funds. This reorganization of holding structure has become a key driving force in the current market. At a time when retail funds are almost exhausted, these two types of participants have become the only remaining dominant forces in the market.
Despite this, the BTC ETF has attracted about $45 billion in new funds, with net inflows in 77% of the months and an average monthly size of $2.6 billion. The peak of the first round of capital inflows occurred in the early days of the ETF launch, boosted by the increase in BTC funding rates. The second wave of capital inflows began with the Feds interest rate cut in September 2024; then, Trump publicly threatened to replace Fed Chairman Powell, which aroused the markets vigilance against the independence of the Fed and prompted the start of the third wave of buying.
“Whale” funds continue to support the bottom, but the real test is quietly approaching. How it develops next will determine the overall situation of BTC at this key price point - and may reshape the market landscape.
Disclaimer: The market is risky and investment should be cautious. This article does not constitute investment advice. Digital asset trading can be extremely risky and unstable. Investment decisions should be made after carefully considering personal circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.
