Wall Street Flows into Bitcoin ETFs: Why BTC Remains Stuck Below $80,000

Bitcoin traded near $80,000 on Monday despite another strong week of inflows into U.S. spot Bitcoin ETFs.

U.S. spot Bitcoin ETFs attracted $986.9 million last week, extending the inflow streak to three weeks and bringing the total during that period to about $3.8 billion.

BlackRock's IBIT accounted for $691.5 million of those inflows, yet Bitcoin was still trading below $80,000 on Monday after briefly rising above $81,000 last week.

This disconnect suggests that demand from ETFs is helping to support the market without yet creating enough buying pressure for a sustained breakout.

ETF inflows are building a support level, not yet a breakout.

The $986.9 million in net inflows last week follows $924.5 million from the previous week.

August brought in another $3.52 billion, the strongest monthly total since September 2025, while total assets in U.S. spot Bitcoin ETFs were about $101.3 billion on Friday.

Zeus Research analyst Dominick John told The Block that sustained inflows into ETFs show that institutions are gradually rebuilding exposure, creating "real spot demand" rather than relying on leverage-driven speculation.

Purchases by ETFs represent real capital entering regulated products and ultimately create demand for Bitcoin itself.

However, robust inflows do not guarantee an equally strong price movement.

Bitcoin is trading in a much broader market where ETF creations are only a marginal source of demand. This makes the current price action less contradictory than one might expect.

Above $80K stands a wall of Bitcoin ready to be sold.

According to Glassnode data, about 600,000 more Bitcoin are in profit around current levels compared to when the cryptocurrency was trading in a similar area in May.

At recent prices, this equates to about $47 billion of potentially profitable supply.

The pressure could increase higher. Data also shows about 1.05 million BTC concentrated between $83,000 and $86,000, where long-term holders near breakeven could become willing sellers.

Bitfinex analysts told CoinDesk that Bitcoin's rally has faced a "defined population of sellers," with spot demand forced to absorb the overhanging supply in the region between $77,100 and $80,000.

Every new ETF buyer entering Bitcoin may find an existing holder willing to take profits.

This explains why billions of dollars in institutional demand can produce consolidation rather than an immediate vertical move.

The cryptocurrency was trading above $81,000 before Friday's U.S. employment report, then fell below $79,000 after payrolls surprised sharply to the upside.

The U.S. economy added 162,000 jobs in August, well above the expected 56,000, while unemployment remained at 4.1%.

Futures markets subsequently priced in about a 60% chance of a Federal Reserve rate hike in September.

"The August jobs report was much better than expected, focusing the Fed squarely on controlling inflation," said Bill Adams, chief economist at Fifth Third Commercial Bank.

Higher rates increase yields on safer assets and tighten financial conditions, making investors less willing to chase risk-sensitive assets, including Bitcoin.

The consumer price report on September 11 remains the next important test ahead of the Fed's meeting on September 15-16.

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