Bitcoin ETF flows may still be positive, but key demand signals are flashing red. Despite bullish headlines and continued institutional inflows, the actual buying pressure behind Bitcoin appears to be weakening—especially in the U.S. and Korean markets. That divergence could set the stage for unexpected volatility.
Exchange Netflows Reveal a Sudden Shift in Behavior
Over the last few days, a sharp increase in exchange inflows has disrupted the recent trend of accumulation. According to CryptoQuant data, Bitcoin saw a spike of more than 30,000 BTC moving to centralized exchanges—one of the highest single-day inflows in 2025.
Source: CryptoQuant
Typically, such large inflows are associated with increased selling pressure. When traders anticipate downside, they tend to move coins from cold storage to exchanges in preparation for liquidation. This is particularly concerning as it coincides with a pause in upward price momentum around $118K–$120K.
Coinbase Premium Turns Flat, Korea Goes Negative
Institutional demand, often measured via the Coinbase Premium Index, is no longer showing strong U.S. buying interest. After weeks of leading the market higher, the premium has flattened—signaling that American institutions may be stepping back from aggressive accumulation.
Source: CryptoQuant
Meanwhile, the Korea Premium Index has flipped negative. Korean exchanges like Upbit and Bithumb have historically shown a premium over global markets during bullish periods. A discount suggests weakening demand or even capital flight from the region.
Source: CryptoQuant
The shift in both these metrics highlights a troubling reality: Bitcoin’s support from retail and institutional investors in two of its most active markets is fading, even as ETFs continue to attract inflows.
Price Holds Steady, But Demand Cracks Beneath
Bitcoin remains range-bound between $117K and $120K. While this price stability might seem reassuring, it masks underlying cracks in demand. Without renewed conviction from large players, the rally may struggle to continue.
Source: Tradingview
What’s most notable is the divergence between price and behavior. ETF inflows typically drive price appreciation—but this time, the market seems reluctant to follow. That could indicate that much of the ETF buying is being offset by private selling, creating a stealthy supply wall.
Final Thoughts: Why Bitcoin ETF Flows Aren’t Telling the Full Story
While headlines continue to highlight Bitcoin ETF flows as a bullish signal, on-chain data tells a more nuanced story. Weakening demand from key regions like the U.S. and Korea, combined with rising exchange inflows, could weigh on price action in the short term.
Until the Coinbase Premium and Korea Premium recover, Bitcoin may remain vulnerable to a deeper pullback—even if institutions keep buying through ETFs.
