Bitcoin (CRYPTO: BTC) is seeing strong spot and ETF demand absorbing whale selling and macro pressure, a setup that Bitfinex analysts call healthy.

Spot Demand Keeps BTC Rally Healthy

Bitcoin gained roughly 25% in August and more than 40% from its bear market low, briefly reaching $81,500 before Fed Chair Kevin Warsh’s hawkish comments pushed it back below $77,000.

Despite rising September rate hike expectations, Bitcoin maintains a bullish structure.

Bitfinex reported on Aug. 31 that Bitcoin’s rally appears increasingly spot-driven rather than fueled by leverage.

Open interest has risen gradually to $55.6 billion while futures basis remains contained, even after the Aug. 19 record short squeeze.

U.S. spot Bitcoin ETFs recorded $924.5 million in net inflows last week, despite $201.9 million in Friday outflows following Warsh’s comments.

Over two weeks, the ETFs attracted roughly $2.8 billion, with last week’s inflows absorbing nearly four times the amount of newly issued Bitcoin.

Institutional Demand Absorbs Crypto Supply

Institutional buying continues to support both Bitcoin and Ethereum (CRYPTO: ETH).

Custodial addresses added roughly 59,100 BTC since late June as large whales sold about 50,500 BTC, suggesting ETF and institutional demand is absorbing profit-taking.

Meanwhile, Ethereum products attracted $815.7 million last week, with ETF demand relative to market size running roughly four times stronger than Bitcoin’s.

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Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.