Bitcoin ETF Inflows Hit $4.6B in June as BTC Eyes $112K Breakout

ETF Liquidity Surge Fuels Bitcoin's (BTC-USD) Institutional Dominance

Over the past three weeks, U.S.-listed Bitcoin spot ETFs absorbed over $4.63 billion in net inflows, signaling a sharp return of institutional demand. Despite early June starting with $128.8 million in outflows, the reversal came quickly. For the week ending June 27 alone, $2.22 billion flowed into Bitcoin ETFs—led by BlackRock’s IBIT, which saw $1.31 billion in net deposits, followed by Fidelity’s FBTC ($504.4 million) and Ark/21Shares ARKB ($268.1 million). This 14-day streak of uninterrupted inflows marks a decisive shift in sentiment from institutions.

BTC-USD Price Holds Above $107K As ETFs Drain Exchange Supply

Bitcoin (BTC-USD) trades near $107,300, steadily recovering from a dip below $100,000 earlier this month. Exchange flows show declining supply: balances across major venues have dropped to a five-year low, according to Glassnode, with perpetual futures open interest now at $114 billion, up from just $11.1 billion in late 2022. Coinbase Prime and Bitwise wallets confirm accumulation by long-only funds. ETF-driven supply absorption is becoming the market's main structural force.

Short Squeeze Pressure Mounts As BTC Faces $110K Resistance

Hyblock Capital data points to an increasingly crowded short cluster between $109,500 and $111,200. With every rejection at $110,000, shorts are refueling—setting up a high-risk short squeeze scenario. A breakout above $110,500 could trigger an explosive rally toward $118,000–$120,000, as stop orders cascade. Technicals confirm the coiling pattern: ascending triangle on the 4H chart, with strong support near $107,200 and a bullish RSI near 65.

Derivatives Cool Down, But On-Chain Metrics Signal Long-Term Confidence

While derivatives volumes saw a 45% drop in the last 24 hours, the Money Flow Index (MFI) remains above 50, showing no sign of panic exits. Bitcoin’s exchange outflows signal a medium-term supply shock, especially as institutional ETFs pull real BTC off exchanges. Funding rates remain positive but not overheated, with open interest climbing 8% in 48 hours—classic smart money behavior during quiet accumulation phases.

ETF Momentum Aligned With Fed Cut Bets And Global Demand Tailwinds

The macro backdrop strengthens the case for Bitcoin. Friday’s PCE report showed a drop in personal spending, reinforcing expectations for a Q3 Fed rate cut—now priced in with 91.4% certainty (per CME FedWatch). This dovish outlook, combined with easing geopolitical tensions, is fueling broader risk appetite. Bitcoin's correlation with the Global Liquidity Index remains strong, and its inverse correlation with the U.S. dollar continues to support upside.

Liquidity, Not Hype, Drives Bitcoin ETF Inflows Past $114B Mark

Glassnode reports that Bitcoin ETF and futures activity has now pushed network liquidity to $114 billion, the highest ever. Importantly, much of this is not arbitrage flow—it’s unhedged, directional capital, suggesting conviction. Helena Lam from Avenir Group notes, "Institutional buyers aren’t probing anymore—they’re deploying size with long-term intent."

Even as some skeptics cite the lack of price movement despite billions in flows, analysts point to paper bitcoin and OTC absorption as suppressing visible price shifts. Whale wallets have absorbed over 300% of new BTC issuance in April, keeping volatility low while positioning accumulates. Bollinger Band compression, now tighter than May’s $67K breakout, indicates an impending move.

Global Demand Expands: Sovereign Wealth And Retail Join The Wave

Beyond U.S. ETF activity, sovereign entities and retail inflows are surging. Bhutan’s sovereign fund compared Bitcoin to gold, echoing sentiment in regions like Latin America, where Bolivia saw a 530% spike in crypto transactions amid currency devaluation. Meanwhile, BlackRock is exploring ETF exposure beyond BTC and ETH—evaluating Cardano (ADA), Solana (SOL), and Polkadot (DOT).

Verdict: BTC-USD – BUY On Breakout, Target $118K–$130K

Bitcoin (BTC-USD) is coiled under critical resistance while ETF demand drains supply, short interest stacks, and macro tailwinds accelerate. With ETF flows surpassing $2.2 billion weekly and institutional conviction deepening, the breakout setup is strong. A confirmed close above $110,500 would trigger a BUY, with first targets at $118,000, followed by a possible move to $130,000. Risk remains contained above $104,000. The market structure, liquidity profile, and global demand narrative all reinforce a bullish thesis.

That's TradingNEWS