Question #103 ·
How did ETF inflows of 3.5 billion dollars and later outflows of 756 million dollars influence bitcoin’s price stabilization?
- 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 Right answer
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.