Bitcoin ETF Demand Weakens, Reserves Increase on Exchanges

Bitcoin (BTC), after a long-standing uptrend, is stabilizing around $111,000, while a cautious atmosphere prevails in the markets. The sales from long-term investors and protective positions in the derivatives markets are limiting the price increase. After months of rising trends, the price of Bitcoin is currently trading at $111,000.

Analysts from CryptoQuant and Glassnode indicate that the market is showing signs of "fatigue." They specifically warn that short-term investors could fall into losses if Bitcoin drops below the $113,000 level. The flow of capital shifting from spot markets to derivative products weakens the sustainability of the rallies. According to Glassnode's report, the $113,000 level forms the cost base for short-term investors. A fall below this level could lead to losses for recent buyers and a loss of confidence in the markets. The firm emphasizes that if Bitcoin falls below this line, there is a risk of a pullback to the $108,000 - $97,000 range.

Glassnode data shows that long-term investors have been selling an average of 22,000 BTC per day since July. This selling pressure is hindering price gains and slowing market recovery. Additionally, CryptoQuant notes that the inflows towards ETFs have weakened and Bitcoin reserves on exchanges have begun to rise again. This situation indicates that investors prefer to gain through volatility rather than spot purchases.

The open positions in the derivatives markets have reached record levels. Investors are now taking protective positions rather than bullish ones. Glassnode highlights that the increased demand for "puts" (downside options) is constraining price movements and that the rallies are being pressured by market makers' hedge sales. CryptoQuant states that instead of capital outflows, a capital rotation is taking place, keeping liquidity within the cryptocurrency ecosystem.

Analysts believe that a lasting recovery will only be possible with an increase in spot demand and reduced volatility in the derivatives markets. For now, Bitcoin is in a period of catching its breath rather than a collapse. One of the factors determining the market direction has now shifted from excitement to risk management.