Bitcoin Market Faces Cooling Phase Amid ETF Inflow Drop

• Bitcoin ETF inflows dropped 80% last week, signaling TradFi caution.
• 96.9% of Bitcoin supply remains in profit despite market cooldown.
• On-chain data shows persistent capital inflows amid softened activity.

The Bitcoin market is experiencing a notable cooldown, according to the latest analysis from Glassnode’s Market Pulse: Week 31.

The report reveals a dramatic 80% drop in Bitcoin ETF inflows last week, plummeting to $496 million, signaling a cautious stance from traditional finance (TradFi) investors. Despite this decline, the crypto market remains resilient, with 96.9% of Bitcoin’s supply still in profit and derivatives positioning holding strong at $45.6 billion in open interest. This divergence highlights a shifting balance between institutional caution and crypto-native optimism.

The market’s recent pullback follows a test of Bitcoin’s all-time high, with prices retreating from the $104,000–$114,000 range. Technical indicators reflect this cooling phase, as the Relative Strength Index (RSI) fell sharply from 74.4 to 51.7, suggesting buyer exhaustion. On-chain activity has softened, with active addresses dropping to 708,000 and transfer volume declining by 23%. However, persistent capital inflows, evidenced by a 6.6% surge in Realized Cap Change, indicate underlying demand. The options market also shows rising volatility expectations, with a 77% jump in the volatility spread, hinting at potential price swings ahead.

Glassnode’s data underscores a market in reassessment, with mixed signals across spot, futures, and ETF sectors. Spot volume dipped to $8.6 billion, though Spot Cumulative Volume Delta (CVD) improved, suggesting dip-buying activity. Futures markets remain elevated, with long-side funding payments increasing, while ETF trade volume fell to $18.7 billion. This consolidation phase could pave the way for a bounce if seller exhaustion continues, though fragility persists if negative catalysts emerge. The report also notes a mildly bullish options Delta Skew and rising speculative presence, with the Short-Term Holder/Long-Term Holder (STH/LTH) ratio ticking upward.

As Bitcoin navigates this pivotal moment, investors are closely watching ETF demand and on-chain metrics for the next move. With institutional adoption and DeFi expansion shaping narratives, the market’s direction hinges on whether TradFi regains confidence or crypto hodlers drive the rally.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.