Bitcoin Exchange-Traded Funds (ETFs) witnessed a dramatic 80% decline in net inflows this week, revealing a significant pullback in demand from institutional investors and large-scale asset managers.
Despite this sharp reduction in ETF investment enthusiasm, derivatives market activity remains robust. Elevated open interest levels persist in CME Bitcoin futures contracts, indicating continued engagement from sophisticated traders.
Simultaneously, on-chain data presents a complex market backdrop. Metrics indicate a remarkably high 95.8% of the total Bitcoin supply is currently held at a profit. This historically high profitability level simultaneously boosts confidence among existing holders but also raises caution regarding potential profit-taking.
Further signaling a cautious stance, the number of weekly active Bitcoin addresses has declined noticeably since peaks observed earlier. This drop is interpreted as a ‘wait-and-watch’ sentiment prevailing, particularly among large holders.
Analysts highlight that this convergence of factors suggests a critical juncture for Bitcoin’s trajectory. Traders are advised to closely monitor both ETF inflows for signs of institutional sentiment shifts and derivatives open interest levels, as movements in these areas frequently precede significant price developments.