Bitcoin rebounds as 31,900 BTC exit Bitfinex and $1.15B flows into spot ETFs, signaling renewed demand from large investors.
Recent Bitcoin price swings have drawn attention to money moving through the market. Geopolitical tensions caused a quick drop that pushed Bitcoin close to $63,000. Buyers soon stepped in, helping the price recover above $70,000 within a few days. At the same time, blockchain data showed a large amount of Bitcoin leaving exchanges, pointing to strong activity from major investors.
Massive Bitfinex Outflow Signals Dip Buying as Bitcoin Recovers From $63K
Large Bitcoin withdrawals appeared during the latest volatility. Data from on-chain analytics platform CryptoQuant shows that about 31,900 BTC left the exchange Bitfinex in a single day.
Image Source: CryptoQuant
In value terms, the transfer equals more than $2.2 billion at current prices. Such movements often draw attention because they can point to accumulation by large holders or institutions. When coins leave exchanges, they often move to private wallets meant for longer-term storage.
Market turbulence began toward the end of February. Reports of a military strike involving Israel and Iran unsettled global markets and triggered risk-off sentiment. As a result, Bitcoin dropped sharply and briefly touched the $63,000 range on February 28.
However, selling pressure faded quickly. Buyers stepped in and pushed the price back toward $67,000 later the same day. The rebound then continued through the following sessions. Bitcoin later climbed to around $74,000 before easing slightly.
Meanwhile, the large exchange withdrawal appeared alongside the recovery. According to analysis shared by CryptoQuant contributor Axel Adler Jr., the single-day outflow from Bitfinex ranks among the largest recorded in recent weeks.
In many cases, such movements signal changing market behavior. Coins leaving exchanges reduce the supply available for immediate trading. Therefore, when this pattern appears during or shortly after a price drop, analysts often view it as dip buying by large investors.
ETF Demand Builds as Bitcoin Buyers Step In After Recent Market Dip
At the same time, institutional flows have also supported Bitcoin’s recovery. Data shows that more than $1.15 billion entered U.S. spot Bitcoin exchange-traded funds during the first three days of March. Because these funds hold actual Bitcoin, inflows lead to direct purchases in the spot market.
Image Source: SoSoValue
A large share of the capital went into the iShares Bitcoin Trust ETF managed by BlackRock. On March 4 alone, the fund recorded inflows of about $306.5 million. Overall ETF inflows for that day reached roughly $461 million.
Consequently, such activity can influence short-term market dynamics. As ETF managers receive capital, they buy Bitcoin to back newly issued shares. Strong inflows can therefore tighten supply in the spot market.
On-chain metrics add further context to the recent trend. Analytics from Glassnode shows that the 14-day netflow trend for Bitcoin ETFs has turned upward after a period of decline.
Image Source: Glassnode
This shift suggests that earlier selling pressure tied to ETF flows may be easing. Buyers appear to be returning gradually, although activity still remains below the peaks seen earlier in the year.
Interestingly, similar patterns have appeared in past market cycles. Sharp declines often attract buyers seeking lower entry levels. Current data indicates that a comparable phase of re-accumulation may now be underway.
