The momentum behind U.S. spot Bitcoin ETFs appears to be fading, raising concerns that Bitcoin’s price may be headed for a deeper correction. After weeks of strong inflows, ETF demand has slowed, hinting at weaker institutional appetite and cooling bullish sentiment.
Bitcoin sellers resurfaced on Thursday as BTC dropped to around $111,000, sparking fears of a potential slide toward the $90,000 level. According to analysts, $108,000 is a critical short-term target, but failure to hold above key supports could push the price even lower.
Institutional demand cools
Data from Glassnode shows that net inflows into Bitcoin ETFs fell sharply, dropping 54% to $931.4 million last week compared to $2.03 billion the week before. While accumulation remains steady overall, the slowdown highlights a pause in institutional interest.
This contrasts with early September, when Bitcoin surged nearly 10% to approach $118,000, fueled by ETF inflows of almost $3 billion across eight trading sessions.
Retail traders add pressure
The spot taker CVD (Cumulative Volume Delta), which tracks the balance between market buys and sells, has stayed sell-dominant since mid-August. This means retail traders have been offloading more BTC than they have been buying, reinforcing the bearish tone.
If ETF flows continue to weaken and retail selling pressure persists, analysts warn that BTC could face a deeper correction heading into October.
Key support levels to watch
Market analyst Michael van de Poppe noted that Bitcoin needs to hold the $112,000–$110,000 support range to avoid a move down toward the $103,000–$100,000 zone. He described this area as a potential buying opportunity before the next bullish cycle begins.
Another analyst, AlphaBTC, observed that BTC/USD is trading within a descending channel. If the $112,000 support fails, Bitcoin could retest the $108,000 level, with a possible “flush” to the $105,000–$100,000 range.
Glassnode also highlighted that BTC has slipped below the 0.95 quantile cost basis at $115,300, a key market risk indicator. Reclaiming this level could restore strength, but failure to do so risks further downside toward the $105K–$90K support region.
