Recent data indicates that institutional investors are actively purchasing Bitcoin, even amid price drops. This suggests a shift in how major players respond to market volatility.
Institutional Response to Price Drop
According to analytics firm Glassnode, institutional investors did not panic when Bitcoin's price briefly fell below $116,000. Monday saw one of the largest daily inflows to US Bitcoin ETFs in the past three months, with an additional +7.5k BTC. On Tuesday, institutions not only held their ground but also added another +3.4k BTC, with outflows remaining near zero.
Comparison to Previous Market Behaviors
This behavior stands in contrast to reactions earlier in 2025 and last year, when sudden price drops triggered immediate outflows from ETFs. For instance, in late February, when Bitcoin's price dropped from nearly $100,000 to multi-month lows of $75,000, net outflows topped $3.2 billion over eight trading days.
Price Predictions for Bitcoin
Economist Timothy Peterson forecast that, based on steady demand and no significant supply increases, Bitcoin's price could rise to $130,000–$135,000 within the next six months. He noted that ETF demand is currently outstripping production, leading to a BTC deficit of 343,000.
Thus, institutional purchases of Bitcoin indicate confidence in the asset's long-term prospects despite short-term price fluctuations. Given current trends, a price increase for Bitcoin may be expected in the coming months.
