In the past week, Bitcoin-backed funds received a total of $600 million in net inflows, marking a significant 67% decrease from the $1.81 billion recorded in the week prior. This drop in institutional investments comes despite Bitcoin's surge above the $100,000 price level for the first time since February, indicating a cautious sentiment among investors.

The decline in capital inflows into Bitcoin ETFs suggests that while there is still interest from institutional investors in gaining exposure to BTC, their pace of investment is slowing down, potentially due to apprehension or uncertainty. Investors seem to be adopting a "wait-and-see" approach after patiently anticipating Bitcoin's breakout above $100,000 for three months, now observing how it stabilizes at this significant level before making further moves.

On the other hand, bullish signals are emerging from the derivatives market, with Bitcoin trading at $103,979 and showing a 0.24% increase in the past 24 hours. The open interest in BTC futures has risen by 2%, indicating growing trading activity and confidence among traders. Moreover, the positive funding rates of 0.0082% suggest a bullish sentiment prevailing in the market, with more participants favoring long positions.

In the options market, call contracts outnumber put contracts, signaling traders' optimism for further price increases. Despite the decline in ETF inflows, the overall market sentiment remains positive and risk-on, reflecting confidence in the ongoing bullish trend in Bitcoin.