Bitcoin Faces Possible Near-Term Correction Amid Profit Taking and ETF Inflows Slowdown

Key Points

1. Bitcoin dropped 4% amid $3.5 billion in profit-taking, with long-term holders accounting for 56% of realized profits, the largest single-day event since April 2025.

2. Over $142 million in Bitcoin leveraged positions were liquidated within 24 hours, with funding rates slightly positive at +0.01%, indicating potential further adjustments.

3. Bitcoin's RSI hit 82.25, signaling overbought conditions, while its dominance rose to 63.39%, reflecting a shift toward established assets amid uncertainty.

4. Bitcoin ETFs saw $1.08 billion in inflows, led by BlackRock’s iShares ETF, but failed to offset broader market pressure from profit-taking and liquidations.

5. The market remains sensitive to macroeconomic developments, particularly U.S. CPI data, with a 0.84 correlation between crypto markets and the Nasdaq.