Key takeaways Bitcoin ETF inflows plunge 96% despite continued buying BlackRock attracts $29.86 million as other funds weaken Glassnode identifies major Bitcoin resistance near $87,700 Bitcoi
Bitcoin faces renewed uncertainty after U.S. spot Bitcoin ETF inflows plunged approximately 96% on October 20, despite BlackRock continuing to attract institutional capital through its iShares Bitcoin Trust (IBIT).
The funds recorded just $23.16 million in net inflows on Tuesday, down from $526.7 million the previous session, according to SoSoValue data.
BlackRock's IBIT attracted $29.86 million, while Fidelity's FBTC added $3.58 million. However, Bitwise's BITB recorded $10.29 million in withdrawals, limiting the industry's overall gains.
Bitcoin remained near the $82,000 region as traders evaluated whether institutional demand could support a recovery toward $90,000.
Bitcoin ETF Inflows Drop Despite BlackRock BuyingMonday's $526.7 million inflow represented the largest single-day increase in Bitcoin ETF demand in nearly a month.
BlackRock accounted for $665.2 million in purchases that day, exceeding the industry's net total because other funds experienced withdrawals.
The rebound followed significant ETF selling earlier in October, including $729 million in combined withdrawals on October 7–8.
Tuesday's slowdown does not mean institutional investors withdrew 96% of their holdings. Rather, the amount of new net capital entering Bitcoin ETFs declined sharply.
The two-day total remained positive at approximately $549.9 million, suggesting institutional interest had not disappeared.
However, the uneven demand complicates Bitcoin's recovery outlook, particularly ahead of the Federal Reserve's October 28 interest-rate decision.
<iframe src=”https://widgets.coincodex.com/w/6a54fac7-535c-4409-9cac-8d1fb9472a6a?site=coinpaper&mode=light” width=”100%” height=”420” frameborder=”0” referrerpolicy=”no-referrer-when-downgrade” style=”border:0;background:transparent;border-radius:0px;”></iframe>Glassnode Identifies $87,700 Bitcoin ResistanceFresh blockchain analytics suggest that Bitcoin faces another obstacle even if institutional buying accelerates.
According to Glassnode, investors who accumulated Bitcoin during the later stages of 2025 hold coins with an average acquisition cost near $87,700.
That level overlaps with Bitcoin's approximately $87,490 opening price for 2026 and its 20-month moving average near $87,165.
The concentration creates a resistance region where investors previously holding unrealized losses may sell as their positions approach breakeven.
The upper-$80,000 range had already limited an earlier Bitcoin rally, reinforcing its importance as a technical reference.
Meanwhile, Glassnode places the average cost basis of U.S. spot Bitcoin ETF holdings near $81,500.
That creates a potential support zone between $80,000 and $81,500, where historical buying interest and exchange order-book liquidity overlap.
Bitcoin Price Prediction: Can BTC Recover Toward $90,000?For a bullish recovery, Bitcoin would first need to reclaim $85,000 before challenging the concentration of supply near $87,700.
A sustained breakout above that region could improve the case for a move toward $90,000, although stronger spot buying would be necessary to support the advance.
Conversely, losing the $80,000–$81,500 support area could expose Glassnode's True Market Mean near $78,000.
Previous price rebounds have shown how quickly Bitcoin can recover from the $80,000 region without establishing a lasting upward trend.
Derivatives positioning adds another risk. Changes in open interest can help reveal whether price movements involve new leveraged positions or the closure of existing trades.
The broader bond-market environment also remains important, with elevated Treasury yields potentially limiting demand for risk-sensitive assets.
For now, BlackRock's continued buying provides some support, but the sharp reduction in overall ETF inflows leaves Bitcoin's next breakout unconfirmed.
