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ETF inflows remain strong for both Bitcoin and Ethereum despite geopolitical turmoil.
On-chain data shows increased whale activity and technical formations signaling a rebound.
Market sentiment may shift quickly if global tensions ease, offering traders new opportunities.
Heightened tensions in the Middle East, particularly the recent flare-up between Iran and Israel, have triggered a wave of caution across global financial markets. Cryptocurrencies, which often reflect broader risk sentiment, experienced notable declines. However, while prices of Bitcoin and Ethereum dipped, underlying data paint a much more complex picture of market repositioning rather than panic.
Bitcoin fell sharply on June 17, 2025, briefly breaking below the $103,000 level amid fears of a wider geopolitical escalation. However, it rebounded to the $106,000 range, reflecting market participants buying the dip after a rapid liquidation event.
Despite volatility, Bitcoin ETFs continue to see strong inflows. Net inflows totaled over $412.2 million on June 16, and another $216.5 million flowed in on June 17. BlackRock’s iShares Bitcoin Trust (IBIT) accounted for over $639.2 million, reflecting unwavering institutional interest. The cumulative AUM across all spot BTC ETFs now represents more than 6% of Bitcoin’s circulating supply, a historic milestone that signals Bitcoin’s growing appeal as a long-term store of value.
IntoTheBlock data reveals a 116.4% spike in large transaction volume, with active addresses up by 18.1%, signaling that more users are transacting on the network despite price turbulence. This rise in wallet activity suggests confidence from long-term holders, not just short-term speculators.
Coinglass reported that over 104,900 traders were liquidated, resulting in the wipeout of $354.6 million in crypto positions. This liquidation flush helps reset leverage levels and often precedes market stabilization and potential recovery.
Bitcoin analyst Jelle observed that each of the last two BTC bull cycles lasted around 1,064 days. If history repeats, Bitcoin is now in the final 18 weeks of this cycle, the most explosive growth phase in past cycles. A monthly breakout and retest signal, which Jelle highlights, adds further bullish weight to Bitcoin’s longer-term trajectory.
Also Read: Bitcoin Price Eyes $108K as BlackRock Fuels Fresh Momentum
Ethereum saw a more pronounced intraday drop of around 2.6%, falling to the $2,520 zone. While this represents a typical correction in volatile markets, the depth of on-chain activity and ETF inflows offers clues that institutional players are using the dip to accumulate.
Ethereum ETFs brought in $21.4 million in net inflows. Though smaller than Bitcoin’s numbers, this is notable given that Ethereum’s ETFs are newer and still gaining traction in investor circles.
Ethereum’s net exchange flows soared by 4,988.5%, a massive spike signaling that large amounts of ETH were moved to and from exchanges, possibly for repositioning or accumulation. Additionally, large transactions jumped 189.5%, suggesting active participation from whales and institutions.
Ethereum is currently forming several bullish chart patterns that mirror structures seen in past bull markets. Galaxy Digital and TradingView analysts have noted a cup-and-handle setup above the $2,400 zone, which often precedes a breakout. Other traders see the $2,180 - $2,400 range as a strategic accumulation zone, aligning with both macro support and technical confluence.
Also Read: Ethereum Whales Buy Big: Will History Repeat with 1000% Gain?
Recent whale activity on the Ethereum network, particularly from addresses dormant since early 2022, suggests confidence in ETH’s medium-term value. This reactivation often occurs at pivotal market moments, adding to the growing evidence of institutional positioning.
The broader market context includes rising gold prices and increased demand for U.S. Treasury bonds, classic indicators of risk aversion. While crypto responded to the geopolitical stress with temporary weakness, its structural investment story remains intact.
The global crypto market cap is at $3.27 trillion, with analysts highlighting the $3.2 - $3.35 trillion range as a key support zone. If sentiment shifts and ETF flows persist, a breakout above $3.35 trillion could propel the market toward $3.5 trillion and beyond.
Buy the Dip Narrative Strengthens: ETF flows and whale activity suggest that institutional investors see current price levels as an opportunity, not a risk.
Technical Bullish Setups Validated: Both Bitcoin and Ethereum have confirmed or are forming bullish structures on the monthly and weekly charts.
Geopolitics Will Dictate Short-Term Moves: Traders should monitor news from the Middle East closely, as a resolution could spark sharp rallies.
Despite the short-term panic sparked by geopolitical unrest, Bitcoin and Ethereum are showing signs of strength below the surface. ETF inflows, whale accumulation, bullish technical patterns, and macro support zones all point to an environment ripe for recovery. While short-term caution is wise, the long-term outlook remains bullish, especially for those looking to accumulate on the dip.
For investors who can tune out short-term noise, this correction may prove to be one of the more strategic buying windows of 2025.
