Analysts warn equity weakness could dampen Bitcoin demand after ETF inflows

equity weakness Bitcoin demand — Analysts warn that further weakness in equity markets could dampen demand for Bitcoin, despite the cryptocurrency recently seeing its largest spot ETF inflows in a month.

Bitcoin dropped about 1.1% over the last 24 hours, while ether fell 1.7%. The broader CoinDesk 20 Index lost roughly 1.6%, pulled lower by declines in Asian stocks and a rising oil price.

Analysts at QCP Capital noted in a recent report that broader equity deleveraging dynamics could transmit to cryptocurrency markets, potentially threatening Bitcoin‘s $80,000 support level if sustained. Both Nasdaq 100 and S&P 500 futures were trading lower, with crypto-related stocks like Coinbase and Galaxy Digital falling in pre-market trading.

The caution comes after a period of significant institutional interest, with U.S. spot Bitcoin ETFs recording their largest single-day net inflows in a month last week. The interplay between traditional equity sentiment and crypto market demand remains a key focus for traders.