After months of bleeding, U.S. Bitcoin ETFs pulled in $4.6 billion over two weeks, the biggest two-week turnaround ever, per May 7th The Week On-chain newsletter named “Gaining Ground.”
Spot Bitcoin ETFs saw nearly $1.3 billion in net inflows over just two trading days this past week, signaling a sharp shift in institutional sentiment.
BlackRock’s IBIT alone drew $970.9 million in a single session—its second-largest daily inflow since launch—while competitors like Fidelity’s FBTC continued to lag.
After enduring the largest sustained outflow streak on record in April, the ETF complex is now back in growth mode.
Bitcoin price itself soared to $97,900 on April 27, 2025, from a $74,000 low, pushing the market’s realized cap to a record $889 billion, according to CoinMarketCap data.
This rally brought relief to millions of holders, but with prices teetering near a critical threshold and volatility expectations oddly quiet, is this the market bottom—or a setup for another twist?
Record Bitcoin ETF Inflows and BTC “Gaining Ground”
Bitcoin ETFs were in a rut. From January to March 2025, they lost 70,000 BTC in net outflows—the longest sustained exit on record.
Then, everything changed. Between April 13 and April 27, 2025, ETFs absorbed $4.6 billion, nearly wiping out prior losses.
US Spot BTC Flows| Source: Glassnode
Assets under management hit 1.171 million BTC, just 11,000 shy of the 1.182 million BTC peak. This surge, fueled by Bitcoin’s climb to $97,900, signals institutional demand is back with a vengeance.
The Bitcoin price jump from $74,000 to $97,900 wasn’t just a chart blip—it was a lifeline. At the April low, over 5 million BTC were underwater.
By April 27, 2025, only 1.9 million remained in loss, with 3 million BTC flipping to profit, according to the newsletter. Short-Term Holders (STH), holding 83% of underwater coins, led profit-taking.
BTC LTH Vs. STH In Loss| Source: Glassnode
Daily capital inflows reached $1 billion, with profits dominating 98% of transactions. The realized cap grew 2.1% in a month to $889 billion, an all-time high, reflecting robust demand.
BTC Realized Cap Net Position| Source: Glassnode
Bitcoin price is trading at $97,000, but it’s on a tightrope. As per Glassnode’s analysis, the price cleared the 111-day moving average and STH cost-basis, both near $94,000.
Yet, the Realized Supply Density metric spiked, showing a dense cluster of coins with cost-bases around $95,000, accumulated from December 2024 to February 2025. Small price moves could spark big reactions, raising volatility risks.
Options markets add intrigue. Implied volatility for 1-week and 1-month contracts hit lows not seen since July 2024. Three- and six-month contracts also compressed, with March 2026 options at a 50% premium—a historically low level.
Historically, such low volatility expectations precede sharp price swings. Traders may be underestimating turbulence.
Bottom or Bounce?
The rally reshaped investor actions. Combined profit and loss volumes hit $1 billion daily, with only 15% of trading days this cycle seeing more.
Losses made up just 1-2% of transactions, showing most holders above $96,000 are holding firm. STH unrealized losses, which spiked during the August 2024 Yen-Carry-Trade unwind and early 2025 downturn, dropped to neutral, easing financial stress.
Per the report, a drop below $94,000 could derail the rally, per. For now, Bitcoin’s $97,000 price and ETF rally point to a potential bottom—but it’s not a done deal.
Traders will watch whether ETF momentum holds and if on-chain strength translates into price gains. With spot funds back in favor and fewer underwater holders, the market may have found a floor —at least until the next volatility surge.
