Bitcoin ETF inflows and outflows can influence short-term market volatility. When there is significant inflow, it indicates increasing investor confidence in Bitcoin, which can drive prices higher. Conversely, large outflows can lead to price drops as investors exit their positions. ETF inflows often reflect broader institutional interest, while outflows may signal shifts in sentiment. Short-term volatility often correlates with these movements, making the market more susceptible to speculative trading and swings in investor psychology.