Bitcoin Rebounds to $115K as ETF Inflows Return, But Market Remains on Edge
Bitcoin (BTC) is showing early signs of recovery, trading just above $115,000 in Tuesday’s Asia session after a bruising week for crypto markets. The modest rebound follows over $1 billion in liquidations and a drop to $113,000 during Friday’s macro-driven selloff.
Stabilization in institutional flows is offering some relief. Asset manager Bitwise reported $18.74 million in net inflows, marking a potential turnaround following one of the heaviest ETF outflow days on record last week.
The latest downturn—Bitcoin’s third consecutive Friday pullback—was sparked by weak U.S. employment data and renewed trade tensions, as Washington imposed fresh tariffs. The broader risk-off move weighed heavily on digital assets, with Solana (SOL) down nearly 20% for the week and Ethereum (ETH) losing close to 10%.
Despite the turbulence, some remain constructive. In a market note, QCP Capital said the broader uptrend remains intact, citing Bitcoin’s highest monthly close ever in July. The firm characterized the recent drop as a “leverage flush,” noting that such corrections have historically cleared the path for fresh accumulation phases.
However, sentiment remains fragile. On prediction platform Polymarket, traders are now pricing in a 49% chance that BTC falls below $100,000 before the end of 2025—up 2 percentage points from the previous day. The pricing reflects persistent caution, even amid improving fundamentals such as regulatory clarity, rising stablecoin utility, and growing momentum around asset tokenization.
Investors will be closely watching ETF flow data due midday Hong Kong time, which could set the tone for the rest of the Asia trading session. A continuation of inflows alongside falling implied volatility may be the confirmation markets need to revive a buy-the-dip mindset.
Market Rundown:
- Bitcoin (BTC): Recovering above $115,000, tracking early signs of institutional support.
- Ethereum (ETH): Trading around $3,700, with Polymarket showing rising odds of a $4,000 breakout in August.
- Gold: Extended its rally into a third day, hitting a two-week high as soft U.S. data increased expectations of a September Fed rate cut—now priced at 86%.
- Nikkei 225: Opened 0.54% higher after President Trump proposed steep tariff hikes on Indian goods.
- S&P 500: Snapped a four-session losing streak, climbing 1.47% to 6,329.94 in its strongest session since May.
