Bitcoin ETF Surge Fuels Positive Sentiment in Crypto While Arbitrum’s Token Release Raises Concerns Over Price Stability

Within just four days,

ETFs saw a massive influx of funds, setting a new milestone that reflects increasing trust among institutional investors in crypto. Latest figures reveal that spot Bitcoin ETFs accumulated $2.8 billion in net inflows, led primarily by BlackRock’s offering. This surge has expanded interest to , as the wider digital asset market gains momentum. In contrast, (ARB) is at a pivotal point, with a significant token unlock event releasing 92.65 million tokens—accounting for 2.03% of its total supply—causing immediate selling pressure and challenging the price stability of this Layer-2 network.

The excitement around Bitcoin ETFs has sparked renewed interest in Ethereum-based platforms such as Arbitrum, which currently holds a $2.7 billion market cap. However, the latest token unlock has introduced short-term uncertainty. Technical analysis shows mixed signals: Arbitrum’s RSI at 47.47 points to flat momentum, while a bearish MACD divergence may indicate downward risk. The token has slipped to $0.49, staying under key moving averages, as market participants watch to see how the new supply will be absorbed.

Arbitrum’s token distribution is notably intricate. Its release plan, which uses both cliff and vesting mechanisms, has set aside 26.94% of tokens for the Offchain Labs team and advisors, with vesting taking place each month for three years. This unlock is a considerable share of what remains, sparking worries about an oversupplied market. Tokentrack reports the next large unlock will occur on September 23, 2025, when another 1.24% of all tokens will become available for trading. This phased release is intended to support long-term goals and market steadiness, yet may lead to more volatility if the selling mounts.

Despite these short-term hurdles, Arbitrum’s network fundamentals are solid. Its use of optimistic rollups and EVM compatibility has boosted both developer engagement and user numbers. Still, the price of the token has lagged, with

now at $0.49—far below its peak of $2.39. Experts point out that, while Ethereum’s ecosystem strength is a positive driver, Arbitrum’s technical signals urge caution. The 20-day SMA at $0.51 and 50-day SMA at $0.52 both reflect a prevailing bearish trend, with important supports at $0.47 and $0.36. Falling beneath these levels could result in more significant losses.

The dynamic between Bitcoin ETF investments and Arbitrum’s token unlock showcases the balance between institutional crypto adoption and market behavior. ETFs have brought substantial capital into crypto, boosting demand for Ethereum-linked assets and supporting projects like Arbitrum. However, token unlocks—a routine occurrence in blockchain ventures—can counteract this

if handled with care. Arbitrum’s resilience against current selling pressure will hinge on whether its ecosystem can absorb the influx and retain support from long-term investors. For now, the market remains cautious, with participants closely watching how prices behave around critical support and resistance markers.