Bitcoin Back Above $80K, IBIT Breaks Outflow Spell
Bitcoin rebounded to nearly $80,700 on Tuesday, after briefly slipping below $80,000, as investors assessed whether renewed demand through U.S. could support prices ahead of the Federal Reserve’s interest-rate decision.The funds attracted $110.34 million on Monday, ending two consecutive sessions of $773.4 million in outflows. BlackRock’s iShares Bitcoin Trust accounted for the entire net inflow, according to SoSoValue data.However, U.S. spot Bitcoin ETFs remained net sellers for October, with approximately $202 million in cumulative net outflows through Monday. The latest price rebound raises a key question: Can renewed ETF demand sustain Bitcoin’s recovery, or is the market still vulnerable to further selling?BlackRock’s IBIT Drives the ReboundU.S. spot Bitcoin ETFs attracted $526.6 million on Oct. 19 and another $528.4 million on Oct. 21, before recording $635.5 million in outflows on Oct. 22, their largest single-day withdrawal since June 2025. Another $137.9 million flowed out on Friday.BlackRock’s IBIT, Fidelity’s Wise Origin Bitcoin Fund and ARK 21Shares Bitcoin ETF were among the funds leading the recent selling.The 12 U.S. spot Bitcoin ETFs held approximately $102.84 billion in net assets, equivalent to around 6.4% of Bitcoin’s market capitalization. Yet Monday’s recovery was concentrated entirely in IBIT, leaving the breadth of renewed demand uncertain.IBIT is trading just below recent resistance around $45.70, according to . This level has proven to be a significant barrier, and a sustained break above it could signal a bullish trend, potentially drawing in more buyers.On the downside, the fund has established a solid support level near $45.12, which aligns with the recent intraday low. Should the price retrace to this level, it may provide an opportunity for buyers to step in, reinforcing the bullish sentiment if the support holds.Why ETF Flows MatterA breakdown from Bitcoin financial services firm River, cited by 99Bitcoins, puts individuals at 79.6% of tradable Bitcoin, followed by businesses at 9.4%, funds and ETFs at 8.5%, and governments at 2.5%.Although ETFs hold a relatively small share of the available supply, their flows can influence prices at the margin. When demand generates new ETF share creations, fund operations can require additional Bitcoin purchases. Redemptions can trigger selling in the opposite direction.Concentrated transactions can have a disproportionate short-term impact when available market liquidity is limited. However, ETF flows are only one driver of Bitcoin prices, alongside derivatives positioning, broader risk appetite and macroeconomic developments.Can Bitcoin Hold Above $80,000?The Federal Reserve’s decision on Wednesday is the next major catalyst. Investors will watch whether Bitcoin can hold above $80,000, whether ETF inflows extend beyond IBIT, and whether cumulative October flows recover from negative territory.Sustained inflows across multiple funds would offer stronger evidence of broadening demand. Continued outflows, meanwhile, could suggest that Monday’s rebound was temporary.Preview Photo: Shutterstock