Bitcoin briefly touched $87,392 before pulling back and holding within the $85,000-$86,500 range. Bitfinex analysts view this price area as a critical threshold determining whether the market’s upward trend will continue or reverse into a correction.
Capital outflows from institutional investment products are posing the first test for this support level. On September 15, Bitcoin ETF products recorded daily outflows reaching $450.4 million. Bitfinex noted this withdrawal figure as the largest single-day outflow since June.
Nicolai Sondergaard, senior analyst at Nansen, stated that the foundation of the price movement above $84,000 was partly driven by a short squeeze meeting renewed ETF buying cycles. He warned that the current market trend is vulnerable to faltering if capital inflows weaken again or if US Treasury yields rise.
Two Companies Buy Hundreds of Millions of Dollars
Amid the pressure of ETF outflows, fresh buying momentum emerged from two treasury-holding corporations. Strategy spent $75.7 million to acquire 950 BTC during the week ending September 20. This move lifted their total holdings to 846,000 BTC. They also allocated $174 million to repurchase STRC preferred shares.
Another firm, Strive, joined in absorbing supply by accumulating 1,355 BTC between September 14 and 18. Combined, these two companies absorbed 2,305 BTC into their portfolios in just one week.
That one-week absorption rate stands out when compared to previous periods. Over the past three months, all public treasuries combined added only around 5,900 BTC. Both companies executed their purchases below Bitfinex’s estimated corporate cost basis of $80,500.
Profitable Positions That May Not Last
The average cost basis for ETF investors currently sits around $86,000. Bitfinex emphasized that for the first time since January, both the ETF cohort and corporate treasuries are holding profitable positions over the same timeframe.
The continuation of the current bull market heavily relies on fresh capital inflows from ETFs and major corporations. For daily market participants, monitoring where hundreds of millions of dollars move from these institutional treasuries provides concrete data rather than blindly guessing the market’s direction.
Reported via crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
