Profit-Taking Slows Bitcoin ETF Demand

The announcement triggered renewed optimism across global financial markets, with crypto markets also benefiting from the sentiment shift.

The United States and China agreed to a 90-day tariff relief deal on Monday, sparking renewed optimism across global financial markets. Crypto markets also benefited from the sentiment shift, which translated to just $5 million in net inflows into the Bitcoin ETF market—its lowest single-day total inflow since April 14.

As trading activity rocketed on Monday, BTC soared to an intraday high of $105,819. However, profit-taking followed, causing the leading coin to shed some of its gains and close at $102,729.

The dip below the psychologically significant $105,000 threshold dampened institutional enthusiasm, discouraging large capital inflows into spot Bitcoin (BTC) ETFs. As a result, net inflows into the ETF market stalled at just $5.2 million on Monday, representing the lowest single-day total inflow since April 14.

Among all issuers, BlackRock’s iShares Bitcoin Trust (IBIT) saw the highest daily inflow with $69.41 million flowing into the fund on Monday, bringing its total historical net inflow to $44.78 billion.

Meanwhile, Grayscale’s Bitcoin Trust ETF (GBTC) saw the highest net outflow among all issuers on Monday, with $32.92 million leaving the fund. GBTC’s total historical net inflows stand at $22.95 billion as of this writing.

The pullback signals that institutional investors may be holding back until BTC reclaims or stabilizes above key resistance levels.Bitcoin cools off after brief surge to $105,000

At press time, BTC is trading at $102,367, down 2% over the past 24 hours. On Monday, the coin briefly surged to a three-month high of $105,819 following the US-China trade agreement news. However, the rally was short-lived, as profit-taking by traders triggered a pullback, causing BTC to close below the psychological $105,000 price mark.

While the dip signals near-term selling pressure, market sentiment remains optimistic. This is reflected by BTC’s funding rate, which remains positive, suggesting that traders continue to bet on a sustained rally, despite the temporary retreat.

Moreover, a look at the BTC liquidation heatmap reveals a significant concentration of liquidity around the $105,337 level. The heatmap highlights potential price zones where large-scale liquidations could occur, providing traders with insight into high-liquidity areas.

These zones, marked in yellow, indicate that if BTC resumes its upward momentum, it could potentially breach the $105,000 level, assuming the current bullish setup holds. In such a scenario, traders holding short positions could face a short squeeze.