Bitcoin ETFs inflows reach $500m but ‘crypto will need some time to recover’

Market Overview - Bitcoin has experienced a decline of 5%, trading around $108,100 after reaching approximately $114,000 [1] - Despite the price drop, US spot Bitcoin exchange-traded funds saw inflows of nearly $500 million on October 21 [1] - The market is characterized by a mix of structural optimism and ongoing liquidity challenges [1] Recent Crash Impact - The crash on October 10 resulted in a collective loss exceeding $20 billion, which is not expected to recover quickly [2] - This event was one of the largest deleveraging occurrences in recent years, exacerbated by technical failures [2] - Macroeconomic uncertainties, including the US-China trade war and a government shutdown, contributed to the crash [2] Institutional Sentiment - Institutional investors are viewing the recent market drawdown as a deleveraging reset rather than a systemic failure [3] - The infrastructure for institutional participation in Bitcoin and Ethereum is now more developed compared to previous downturns [3] Buying Opportunities - The current market environment is seen as a buying opportunity for institutions with available capital, as excess leverage has been reduced [4] - This allows firms to enter or scale positions with lower tail-risk compared to earlier cycles [4] Price Targets and Market Sentiment - Key price levels for Bitcoin are $103,500 for support and $126,000 as the first upside target, with a potential of reaching $150,000 if bullish momentum returns [5] - For Ethereum, resistance levels are identified at $3,500 and $4,900, with a further target of $6,300 [5] - Retail investors remain bullish, although their focus has shifted to other market areas due to a lack of movement in the crypto market over the past five months [6]