The crypto market opened February with a brutal volatility check, sending Bitcoin testing the sub-$75,000 region and XRP sliding below key support levels. However, what looked like the start of a deeper correction on Monday morning quickly transformed into a sharp U-turn by Tuesday. While retail traders were shaken by the sudden dip, on-chain data and ETF flows reveal institutions used the panic to execute one of the largest accumulation days of the year.
Bitcoin ETFs: The $562 Million Buy Signal
After a week defined by uncertainty and outflows, US Spot Bitcoin ETFs posted $561.89 million in net inflows yesterday, February 2. To put this number in perspective, the previous week saw nearly $1.5 billion exit the market as macro fears took hold.
For institutions to reverse course so abruptly, pouring over half a billion dollars back into Bitcoin in a single trading session, suggests that large-scale asset managers viewed the drop to the mid-$70k range not as a crash, but as a discounted entry point. This “buy the dip” behavior from the ETF sector provided the foundational liquidity needed to halt the sell-off and push prices back toward the $78,000 mark.
XRP ETFs: Seller Exhaustion Confirmed
While Bitcoin dominated the headlines, XRP’s story highlights its remarkable resilience. During periods of high volatility, altcoins typically suffer from heavy panic selling. However, the data from yesterday shows that XRP investors refused to capitulate.
XRP ETFs saw outflows almost completely dry up, losing a negligible $404.69k yesterday. In the context of a billion-dollar market, this figure is statistically insignificant and implies “seller exhaustion.” Essentially, anyone who wanted to sell XRP had likely already done so during the weekend slide.
The remaining holders, and the institutions backing these crypto ETFs, are demonstrating extreme conviction. With outflows effectively at zero despite the price volatility, the supply side of the equation has tightened significantly, creating a setup where even a modest increase in demand could spark a rapid price appreciation.
Crypto Whales & Retail Join the Rally
The confidence of Bitcoin and XRP ETF investors has trickled down to the broader market. As news of the institutional inflows broke, social sentiment on platforms like X shifted from “extreme fear” to opportunistic accumulation. Market updates posted on the platform highlighted the disparity between retail panic and institutional buying, urging investors to prepare their cash to re-enter the market.
On-chain data further corroborates this shift. Whales were observed mirroring the ETF strategy, adding to their positions rather than selling into the fear. This alignment between institutional capital and crypto capital has created a robust floor for asset prices. As we move further into the week, the market’s ability to absorb Monday’s shock suggests that the path of least resistance remains to the upside, provided these inflow levels can be sustained.
Evans Kelvin
The CoinRemark Team
