The crypto asset market experienced a significant breather this February 2, 2026, as U.S. spot Bitcoin ETF inflows recorded a net daily total of $562 million. This movement, spearheaded by funds from Fidelity and BlackRock, emerges as a strategic attempt to reverse the negative streak seen in late January, where outflows surpassed a staggering $1.7 billion in cumulative redemptions across all major providers.
According to data compiled by SoSoValue, this recovery represents one of the largest single-day entry volumes since the start of the year. Nevertheless, the report highlights that despite the rebound, total assets under management fell to $100.38 billion, reflecting the underlying price depreciation of the currency rather than a total collapse in investor participation, keeping a close watch on support levels that remain critical for the asset.
Institutional Demand Persistence and IBIT’s Market Dominance
BlackRock’s iShares Bitcoin Trust (IBIT) reaffirmed its leadership by capturing $141.99 million in a single session, equivalent to roughly 1,810 BTC. Meanwhile, Fidelity’s FBTC fund led the daily Bitcoin ETF inflows with $153.35 million, proving that institutional appetite remains strong even as fund shares traded at a slight discount to their net asset value, suggesting a phase of selective accumulation by large-scale wealth managers and family offices.
While other issuers like Bitwise and ARK Invest also reported positive flows, the Grayscale Bitcoin Trust (GBTC) continued without recording any new entries, still burdened by its persistent historical outflows. This divergence in fund behavior indicates that capital is rotating toward vehicles with more competitive fee structures, seeking to optimize expected returns in a high-volatility environment, where every dollar entered helps to stabilize the overall market price and sentiment.
However, on-chain data from CryptoQuant adds a note of caution, pointing out that 44% of the Bitcoin supply is currently held at a loss. This “supply in loss” level has historically coincided with the early phases of prolonged bear markets, casting doubt on whether recent Bitcoin ETF inflows signal a definitive trend reversal or just short-term tactical positioning, alerting investors to further potential downside risks if support zones fail to hold.
Bitcoin Price Action Amid Regulatory and Macro Uncertainty
One cannot ignore that the Bitcoin price, currently trading near $78,900, sits about 37% below its all-time high of $126,080. On the other hand, analysts at Galaxy Digital warn that the asset could still test the $70,000 support level if fresh catalysts do not emerge, given that key moving average supports have been lost recently, increasing the pressure on holders who entered the market at much higher price points during the last quarter.
Despite the modest 2.5% daily recovery, “extreme fear” sentiment continues to dominate the market index, influenced by uncertainty regarding the new Federal Reserve leadership. Furthermore, a structural lack of liquidity in stablecoins has hindered a more aggressive recovery, limiting the bulls’ ability to reclaim control above the psychological $80,000 mark, according to the latest technical findings provided by researchers and market observers monitoring the current cycle closely.
Ultimately, the Bitcoin ETF inflows seen in early February act as a necessary but insufficient buffer to declare the end of the current correction. The market is expected to stay in a consolidation phase as investors digest changes in U.S. monetary policy, waiting for a clear sign of renewed whale accumulation to confirm that a generational floor has been established, effectively setting the course for price action over the coming months.
