Bitcoin (BTC) price is retracing, but strong ETF inflows, high network activity and whale accumulation suggest BTC is on track to $140,000

Bitcoin's price is retracing, but strong ETF inflows, high network activity and whale accumulation suggest BTC is on track to $140,000.

Key takeaways:

* Bitcoin’s price is retracing, but strong ETF inflows, high network activity and whale accumulation suggest BTC is on track to $140,000.

* Spot Bitcoin ETFs saw $2.9 billion in net inflows in two weeks, mirroring past rallies.

The price of Bitcoin (BTC) dropped by 1.4% over the last 24 hours. It traded 6% below its all-time high of $109,000, reached on Jan. 20.

However, several fundamental, onchain and technical metrics suggest that Bitcoin’s upside is not over.

Spot Bitcoin ETF inflows mirror past BTC rallies

Bitcoin’s latest recovery was accompanied by strong investor appetite for spot Bitcoin exchange-traded funds (ETFs), which recorded $2.9 billion in net inflows over the last two weeks.

The chart below shows that after the launch of the US-based spot Bitcoin ETFs in January 2024, these investment products saw net inflows of about $8.5 billion between Feb. 13, 2024, and March 13, 2024, peaking at a record single-day inflow of $1.045 billion on March 12, 2024.

Similarly, between Nov. 6, 2024, and Dec. 16, 2024, cumulative daily inflows hit $5.7 billion, aligning with Bitcoin’s 60% rally from $67,000 to $108,000 over the same period.

If ETF inflows continue, Bitcoin is likely to resume its uptrend toward new all-time highs.

Bitcoin market volatility index: risk-on

Increased inflows into spot Bitcoin ETFs signal high risk-on sentiment, as evidenced by a drop in the CBOE Volatility Index (VIX), which measures 30-day market volatility expectations.

Bitcoin network economist Timothy Peterson highlighted that the VIX index has dropped substantially to 18 from 55 over the past 25 trading days.

A VIX score below 18 implied a “risk-on” environment, favoring assets like Bitcoin.

The analyst said:The VIX Index is now at 18 after a 25 trading day decline from 55. Chart: TradingView

“The VIX is a key indicator of market risk appetite. When the VIX is low, it signals that investors are calm and there is low uncertainty in the market, which is a bullish factor for BTC. Conversely, when the VIX is high, it indicates market stress and skittish investors, which tends to coincide with Bitcoin price corrections.”

Peterson’s model, which has a 95% tracking accuracy, predicted a $135,000 target within the next 100 days if the VIX remains low.

Strong Bitcoin accumulation continues

suggest that BTC is on track for $140,000.