Bitcoin is experiencing pressure on a key support level as U.S.-based spot Bitcoin ETFs have seen significant outflows following a recent downturn in the crypto market. Analysts from Bitfinex express concerns that the absence of inflows into Bitcoin ETFs could lead to a fragile demand situation.

“The lack of institutional accumulation has made the $107,000 to $108,000 zone increasingly difficult to defend as support,” said Bitfinex analysts in a report released on Tuesday, highlighting noteworthy net outflows after U.S. President Donald Trump’s tariff announcements earlier this month.

Between October 13 and 17, spot Bitcoin ETFs faced approximately $1.23 billion in net outflows, as reported by Farside.

Bitcoin Performance Bitcoin is down 3.36% over the past 30 days. Source: CoinMarketCap

The analysts concluded that the current data illustrates a significant lack of substantial dip-buying from institutional players. While this week has witnessed outflows on two out of three trading days, noteworthy inflows observed on Tuesday have kept the overall net flows positive, amounting to $335.4 million.

ETF Performance Near Critical Market Thresholds

As of the latest updates, Bitcoin trades at $108,864, having recently peaked at above $113,000 before retreating back below $110,000. Analysts indicate that this price level is critical and could signal a longer consolidation period if the market continues to decline.

“If weakness persists or ETF inflows fail to recover meaningfully in the coming weeks, it would point to growing demand-side fragility,” elaborated the analysts.

“Such a scenario could undermine one of the primary forces behind previous rallies — consistent institutional accumulation, heightening the risk of a more prolonged consolidation phase.”

Despite the looming concerns, a majority of those engaged in the market anticipate a positive price movement for Bitcoin before the year’s conclusion, with prominent figures such as Arthur Hayes and Tom Lee predicting a target of $250,000.

However, Galaxy Digital’s Mike Novogratz voiced reservations about these predictions, suggesting several unusual factors would need to align for such forecasts to materialize, stating that even in a pessimistic scenario, Bitcoin should ideally remain above the $100,000 mark this year.