110 Million Inflows Support Galaxy's View Bear Market Over Bitcoin

BTC is currently trading slightly above $80,000, reflecting a decline exceeding 4% month-to-date, as investors balance improving long-term indicators against ongoing selling pressure.

Support for the bullish outlook was provided by U.S. spot Bitcoin ETFs, which saw $110 million in net inflows on October 26. This inflow period followed a two-day streak of outflows, with BlackRock's iShares Bitcoin Trust (IBIT) driving most of the gains.

Conversely, U.S. spot Ether ETFs reported outflows ranging from $88 million to $90 million during the same session, indicating institutional demand is not uniformly optimistic.

Galaxy Research stated on October 26 that the Bitcoin bear market is over, suggesting BTC is in an accumulation phase after potentially bottoming near $76,500 on June 30. The firm cites Bitcoin's recovery above key long-term moving averages, including the 50-week moving average, noting BTC has closed above it multiple times.

When this assessment was made, Bitcoin was near $80,000, placing it 5% above the 50-week moving average, which was near $76,000. Galaxy also points to decreased selling pressure from long-term holders, macro traders, and basis-focused funds, alongside substantial drops in net-long positions in CME Bitcoin futures.

Galaxy's positive outlook is conditional; a sustained weekly close below the 50-week moving average without a swift rebound would weaken its assessment and increase the risk of further declines.

Bitcoin's immediate challenge involves testing the $75,800–$76,500 range near its 50-week moving average while maintaining consistent spot demand. If ETF recovery persists and selling remains muted, BTC could establish a stronger foundation for future gains.