Bitcoin Rebounds Above $103K After $2.6B ETF Outflows, But Analysts Warn of Fragile Recovery
The crypto market is showing early signs of life after a bruising sell-off, with Bitcoin (BTC) rebounding above the $103,000 mark following one of the largest weekly exchange-traded fund (ETF) outflows in history. However, analysts remain divided on whether this signals the start of a sustainable recovery—or just another temporary bounce.
According to CoinGecko data, Bitcoin has climbed from Wednesday’s intraday low of $99,600 to trade around $103,400, while Ethereum (ETH) gained over 5% in 24 hours to hover near $3,439. Despite these gains, BTC remains roughly 18% below its October record of $126,080, and ETH continues to trade well under its August peak of $4,946.
ETF Outflows Add Pressure Amid Market Weakness
Investor sentiment has been shaken by a record $2.6 billion in combined redemptions from U.S. Bitcoin and Ethereum ETFs over the past week, according to data from Farside Investors. Bitcoin funds saw $1.9 billion withdrawn, while Ethereum funds lost $718.9 million, marking one of the sharpest outflow periods since the products’ launch.
The withdrawals have added downward pressure on prices, compounded by macroeconomic concerns including President Donald Trump’s escalating trade tensions with China, the ongoing U.S. government shutdown, and waning hopes for a third interest rate cut this year.
Despite Trump’s pro-crypto policy stance, his administration’s trade moves have weighed on risk-on assets across the board, from digital currencies to tech equities. Earlier this year, U.S. spot Bitcoin ETFs endured an eight-day losing streak totaling over $2.2 billion in outflows after the announcement of new tariffs.
Still, financial advisor Ric Edelman, founder of the Digital Assets Council of Financial Advisors, urged investors to view the broader picture.
“The Bitcoin ETFs have collected more than $100 billion in assets, so while $2 billion in outflows sounds like a lot, it’s only 2%—hardly noteworthy,” Edelman told Decrypt. “What’s noteworthy is that despite these outflows, Bitcoin’s price hasn’t crashed. This shows the growing maturity of the asset class.”
Analysts Split on the Path Forward
While short-term optimism is returning, experts warn that Bitcoin’s bounce could be technically driven rather than fundamentally strong.
“What we are looking at right now is a technically driven rebound, being supported by spot inflows and leveraged short-covering,” said Shawn Young, Chief Analyst at MEXC Research. “It’s not necessarily a resurgence of long-term conviction.”
On-chain data from CryptoQuant supports that caution. Around 28.1% of Bitcoin’s supply is now held at a loss, a level that historically preceded price reversals—but only when accompanied by steady accumulation by long-term holders.
“The market needs to see consistent on-chain accumulation and stabilized funding rates for this bounce to become an enduring bottom,” Young added.
Others see the $100,000 zone as a key accumulation range.
“If the weekly close holds above $103,000, Bitcoin could fuel a mid-term recovery into 2026,” said Jiehan Chen, Lead Analyst at Schroders. “But without a macro catalyst—like an end to the government shutdown—choppiness may continue.”
From Sell-Off to Setup?
Bitcoin has dropped roughly 25% from its October peak, leading some to view the current price range as a potential base for a long-term recovery. However, Galaxy Digital’s Head of Research, Alex Thorn, recently revised his year-end BTC target down from $185,000 to $120,000, citing the recent market turbulence.
For now, the crypto market sits at a crossroads—caught between structural maturity and macroeconomic uncertainty. With ETFs proving both a source of liquidity and volatility, and Washington gridlock weighing on investor confidence, the coming weeks will determine whether Bitcoin’s latest bounce is a turning point or just another pause in a broader downtrend.
