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Question #487

How can observing ETF inflow and outflow figures help beginners understand shifts in institutional demand for Bitcoin?

Catégorie: General
They predict precise Bitcoin price targets based solely on historical market highs.
They show daily retail transactions volume unrelated to institutional investor behavior patterns.
They reveal when large investors buy or sell, indicating institutional confidence shifts.

Pourquoi est-ce la bonne réponse?

This is correct because ETF flow data directly tracks the amount of Bitcoin entering or leaving exchange-traded products. When inflows rise, it shows institutions are buying, boosting demand and confidence. Outflows suggest profit-taking or reduced appetite, signaling caution. Beginners can use these figures as a reliable proxy for large-scale professional activity, helping to anticipate market moves driven by deep-pocketed players rather than small retail trades.

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