@esmersdalda
The surge of Bitcoin ETF inflows in 2025 has sparked debate about whether capital movements lead or lag price action. Evidence suggests a mild lag effect: net inflows often peak after Bitcoin rallies, as institutions chase momentum. However, during corrections, inflows provide a stabilizing force, slowing down volatility. This creates a feedback loop where ETFs amplify existing trends rather than initiate them. For traders, monitoring ETF flow data may help identify late-stage moves and potential overextensions. The key lies not in inflows alone but in how they align with macro liquidity and miner selling pressure, which together shape Bitcoin’s mid-term trajectory.
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