ETF's Solo Performance Debuts, Bitcoin Loses Momentum, Institutional Buying Becomes a Savior

As of 2025, after experiencing intense volatility, Bitcoin is currently hovering around $90,160, with a price change of only +1.07%. More notably, the main driver of this round of market movement has quietly shifted—the once diverse market participants have now become secondary players in the “ETF solo act,” while the institutional giants holding the real influence have yet to make an appearance.

ETF Becomes the Sole Main Stage for Bitcoin

According to multiple market analysts’ observations, the current fluctuations in Bitcoin’s price are entirely dependent on ETF capital inflows and outflows. Gerry O’Shea, Head of Global Market Insights at Hashdex, pointed out that although upcoming weeks may see favorable developments due to shifts in U.S. monetary policy or potential crypto legislation in Congress, at present, Bitcoin remains trapped in a range-bound consolidation.

The formation of this solo act has deep-rooted reasons. Jim Ferraioli from Charles Schwab’s Financial Research Center explained that low trading fees, profit-taking by long-term holders, and Bitcoin balances on exchanges dropping to lows have significantly cooled on-chain activity. Instead, ETF capital flows have become the dominant force influencing the price. While this structural shift makes it easier for ordinary investors to participate in Bitcoin trading, it also short-term distorts the authenticity of market signals.

Why Are the Big Institutional Players Still Watching from the Sidelines?

The divergence in Bitcoin’s trend stems from a misalignment of expectations. Jim Ferraioli from Charles Schwab stated that the true institutional giants have not yet fully entered the market. In his view, the core issue facing the current market is the lack of a new wave of institutional capital or a shift in the overall economic environment (such as rate cuts). Hyunsu Jung, CEO of Hyperion DeFi, further pointed out that as the ETF capital influx at the beginning of the year recedes, digital assets are losing their shine compared to other asset classes. Therefore, he expects Bitcoin to maintain a pattern of continued consolidation.

It is worth noting that the key to sustaining Bitcoin’s price increase lies in the enactment of relevant legislation. Once a clear regulatory framework is established, institutional capital is highly likely to flood in on a large scale, thoroughly changing the current situation where ETFs dominate the scene.

Undervalued Bitcoin Awaits a Savior

Will Reeves, CEO of fintech company Fold, offers a more direct insight—Bitcoin is currently severely undervalued by the market. In his view, this is purely a supply and demand cycle issue: the market is waiting for selling pressure to fully exhaust itself and for a new wave of buying to step in.

There are still differing opinions on whether Bitcoin has entered a new “crypto winter.” Jim Ferraioli stated that, by traditional definitions, Bitcoin is undoubtedly in a bear market. However, considering its high volatility, a 30% correction is not unusual. Looking back from the November 2022 lows to the record high of $126,000 set last October, Bitcoin surged 8 times in three years. The market is now in a digestion phase, requiring time to absorb this massive rally.

Adoption Breakthrough Is the Ultimate Variable

Although Bitcoin has some correlation with the US stock market, it still has its own unique drivers: money supply, a deflationary supply growth mechanism, and most importantly—the adoption rate. In a market currently dominated by ETF solo acts, the real game-changer will be whether Bitcoin’s adoption rate can achieve a new breakthrough. As long as this indicator progresses, coupled with potentially favorable policies, institutional capital will truly enter the scene, allowing Bitcoin to break free from the solo act and re-enter a new multi-participant landscape.