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Question #103

How did ETF inflows of 3.5 billion dollars and later outflows of 756 million dollars influence bitcoin’s price stabilization?

Category: General
ETF outflows caused exchanges to halt trading and inflows resumed only after price fell
ETF inflows gave miners power credits and outflows forced them to sell rigs cheap
Large ETF inflows boosted confidence and demand, while subsequent outflows tempered volatility aiding stabilization

Why is this the correct answer?

This is correct because the initial $3.5 billion of new money flowing into Bitcoin ETFs signaled strong institutional demand, which helped lift and stabilize prices. Later, $756 million of outflows acted like a pressure release, preventing overheated buying and reducing extreme swings. For beginners, ETF inflows add buying pressure, and outflows can dampen volatility, together helping prices settle around new levels.

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