Bitcoin briefly drops below $94K amid $2 billion in ETF inflows and Strategy purchase

• Bitcoin ETFs saw $1.8 billion in inflows last week, recording positive flows for the second consecutive week.
• Strategy announced that it purchased 1,895 BTC last week at an average price of $95,167 per BTC.
• Bitcoin briefly dropped below $94,000 as its Realized Profit/Loss Ratio moved above 1.0, signaling profit-taking among investors.

Bitcoin (BTC) briefly declined below $94,000 on Monday following a slight increase in profit-taking among investors. This comes after investment products tracking the top digital asset recorded a second consecutive week of positive flows worth $1.8 billion.

Bitcoin ETFs record $1.8 billion inflow as Strategy increases BTC holdings

Digital asset products marked another week of inflows, netting $2 billion last week, according to CoinShares' weekly data. The inflows mark the continuation of a positive shift in investor sentiment toward digital asset products after nine weeks of outflows.

Bitcoin ETFs were the major gainers among crypto products, with a second consecutive week of inflows worth $1.8 billion. As a result, the top digital asset has netted $5.5 billion in cumulative inflows over the past three weeks.

The rise in Bitcoin ETF inflows closely aligns with Strategy's purchases in the past three weeks. The Bitcoin-focused firm acquired 1,895 BTC last week for $180 million, at an average price of $95,167 per BTC. This brings its total holdings to 555,450 BTC as the company continues to expand its Bitcoin portfolio.

Strategy also announced that it increased its Bitcoin yield and dollar gains target for 2025, raising them from 15% to 25% and $10 billion to $15 billion, respectively.

Likewise, Semler Scientific acquired 167 Bitcoin for $16.2 million last week, raising its holdings to 3,634 BTC with a yield of 22.2% so far in 2025.

In addition, Thumzup Media (TZUM) filed a registration statement with the US Securities and Exchange Commission (SEC) to raise $200 million to purchase Bitcoin. This move follows Thumzup's earlier disclosure of a $1 million Bitcoin acquisition in January, signaling a growing interest in increasing digital assets exposure in its corporate strategy.

Bitcoin dropped to $93,840 on Monday, down from last week’s high of $97,700. This follows BTC's Realized Profit/Loss Ratio climbing back above 1.0, indicating a return to profit-taking among investors, according to Glassnode data. 

Furthermore, Bitcoin's Market Value to Realized Value (MVRV) Ratio has pulled back to its long-term average of 1.74, a level historically linked to market consolidation phases. This reset reflects a cooling of unrealized gains, resembling the unwind in August 2024. Meanwhile, improving market sentiment suggests that buying demand remains strong enough to absorb selling pressure, reinforcing the outlook for a potential market recovery, noted Glassnode analysts.