Recently, the fund movements in Bitcoin ETFs have been quite interesting. The single-day net outflow reached $398.95 million, and over three consecutive days, the total outflow has amounted to $1.12 billion, essentially wiping out the net inflows that were hard-earned in the two trading days at the beginning of the year.

It looks alarming, but what do industry insiders think? Nick Ruck from research firm LVRG Research offers a somewhat different interpretation — he believes this wave of outflows is mainly due to portfolio rebalancing for the quarter, some investors taking profits after the recent rebound, and the current market being in a consolidation phase, making everyone a bit cautious. The key point is, this does not mean that institutional demand for crypto assets has undergone any fundamental change.

From a macro perspective, BTC is still above $90,000. Although it’s in consolidation, there are continuous institutional buying forces supporting it behind the scenes.

Nick Ruck advises traders to watch for these signals: first, whether the fund flow trend of ETFs will reverse; second, whether Bitcoin can break through the critical resistance level of $95,000; third, the policy movements of the Federal Reserve. Combining these factors will help determine whether the market will continue to advance or experience volatility and adjustments.