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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?

  • 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.