Wall Street is pouring into Bitcoin ETFs: why BTC is still trapped below $80,000

Bitcoin traded near $80,000 on Monday despite another strong week of inflows into US spot Bitcoin ETFs.

US spot Bitcoin ETFs attracted $986.9 million last week, extending their inflow streak to three weeks and bringing the total over that period to about $3.8 billion.

BlackRock’s IBIT accounted for $691.5 million of those inflows, but Bitcoin was still trading below $80,000 on Monday after briefly moving above $81,000 last week.

That disconnect suggests ETF demand is helping support the market without yet creating enough buying pressure for a sustained breakout.

ETF money is building a floor, not yet a breakout

Last week’s $986.9 million of net inflows followed $924.5 million the previous week.

August brought another $3.52 billion, the strongest monthly total since September 2025, while total assets across US spot Bitcoin ETFs stood at about $101.3 billion on Friday.

Zeus Research analyst Dominick John told The Block that sustained ETF inflows show institutions are steadily rebuilding exposure, creating “genuine spot demand” rather than relying on leverage-driven speculation.

ETF purchases represent actual capital entering regulated products and ultimately creating demand for Bitcoin itself.

But strong inflows do not guarantee an equally strong price move.

Bitcoin trades in a much larger market where ETF creations are only one source of marginal demand. That makes the current price action less contradictory than expected.

Above $80K sits a wall of Bitcoin waiting to be sold

As per Glassnode data, about 600,000 more Bitcoin are sitting in profit around current levels than when the cryptocurrency traded in a similar area in May.

At recent prices, that represents roughly $47 billion of potentially profitable supply.

The pressure could increase higher up. The data also shows about 1.05 million BTC concentrated between $83,000 and $86,000, where long-term holders approaching breakeven may become willing sellers.

Bitfinex analysts told CoinDesk that Bitcoin’s rally had run into a “defined population of sellers,” with spot demand having to absorb overhead supply around the $77,100 to $80,000 region.

Every new ETF buyer entering Bitcoin can be met by an existing holder willing to take profits.

That explains why billions of dollars of institutional demand can produce consolidation rather than an immediate vertical move.

Friday’s jobs shock put the Fed back in the way

The cryptocurrency traded above $81,000 before Friday’s US employment report, before dropping below $79,000 after payrolls surprised sharply to the upside.

The US economy added 162,000 jobs in August, far above the roughly 56,000 expected, while unemployment held at 4.1%.

Futures markets subsequently priced the probability of a September Federal Reserve rate increase at about 60%.

“The August jobs report was much better than expected, focusing the Fed squarely on controlling inflation,” Fifth Third Commercial Bank chief economist Bill Adams said.

Higher rates raise yields on safer assets and tighten financial conditions, making investors less willing to chase risk-sensitive assets including Bitcoin.

That leaves the September 11 consumer-price report as the next major test before the Fed’s September 15-16 meeting.