Bitcoin Volatility Surges as ETF Inflows Return

The article analyzes the slowdown in Bitcoin and Ethereum wallet growth, highlighting the concentration of accumulation among large institutions, which reduces the role of retail investors and increases market volatility.

Bitcoin Volatility Surges As Etf Inflows Return

The chart indicates that since Bitcoin’s [BTC] bull run after 2020, the growth rate of unique wallets and active addresses has shown signs of slowing down — particularly for wallets with a balance exceeding 1 USD.

This stagnation reflects the adoption curve model, suggesting that BTC accumulation has increasingly concentrated in a small number of high-value wallets. Large-scale entities, such as MicroStrategy (MSTR), have amassed substantial Bitcoin holdings, reducing broad distribution among retail investors.

Ethereum [ETH] exhibits a similar trend, with the lowest adoption rate recorded in 2025. As institutional dominance grows, on-chain metrics have become less reliable in assessing retail investor participation.

Bitcoin Trend Chart
Bitcoin Demand Models

This structural shift could have a significant impact on the market. Institutional wallets are now playing a crucial role in liquidity cycles. A clear example is Bitcoin’s sharp decline to 77,000 USD in February, coinciding with continuous outflows from BTC ETFs.

On February 25, Bitcoin ETFs recorded net outflows of up to 1.4 billion USD, causing a 5.11% price drop within just 24 hours. Similarly, Ethereum ETFs are still experiencing prolonged sell-offs and face challenges in attracting new capital.

Notably, these institutional outflows coincided with the Trump administration’s stringent tariff policies, adding another layer of macroeconomic volatility to the cryptocurrency market.

Love

0.0/5

Love

Latest

Sbf Team Claims Ftx Was Never Bankrupt

News | Editor Choice | Policy & Regulations

SBF Team Claims FTX Was Never Bankrupt

Nearly three years after its historic collapse, Sam Bankman-Fried’s team has reignited controversy by declaring that “FTX was never bankrupt,” sparking a fierce debate across the crypto community.

Coinbase And Strategy Post Record Q3 Profits

News | Bitcoin | Editor Choice

Coinbase and Strategy Post Record Q3 Profits, Continue Aggressive Bitcoin Accumulation

Both Coinbase and Strategy Inc. reported record profits for Q3 2025 and significantly increased their Bitcoin holdings, signaling a growing wave of institutional accumulation despite BTC’s price hovering around $107,000.

Binance.us Accused Of Political Favoritism After Listing Trump Family’s Usd1 Token

News | Editor Choice | Policy & Regulations

Binance.US Accused of Political Favoritism After Listing Trump Family’s USD1 Token

Binance.US is facing a wave of fierce criticism after listing the Trump family’s USD1 stablecoin, just a week after Donald Trump’s controversial pardon of Changpeng Zhao — a move many see as a “political favor” between the White House and the crypto world.

Spacex Moves $31 Million In Bitcoin, What Is Elon Musk Planning

News | Bitcoin | Editor Choice

SpaceX Moves $31 Million in Bitcoin, What Is Elon Musk Planning?

SpaceX’s sudden $31 million Bitcoin transfer within just one week has sent shockwaves through the market, sparking speculation that Elon Musk may be preparing for a mysterious strategic move.

21shares Files For Hype Etf, While Bitwise’s Solana Etf Records

News | Altcoin | Editor Choice

21Shares Files for HYPE ETF, While Bitwise’s Solana ETF Records

The crypto ETF market is heating up as 21Shares and Bitwise roll out new products, signaling Wall Street’s growing interest in altcoins.

Screenshot 2025 10 20 091338