ETF Slump Rings Alarm Bells—But Bitcoin’s Core Metrics Scream Bullish
Wall Street's favorite crypto wrapper stumbles—meanwhile, Bitcoin's plumbing looks bulletproof.
The ETF facade cracks
Institutional darlings show weakness as flows reverse—yet another reminder that tradfi products often trail the asset they're supposed to track.
On-chain don't lie
Hash rate rockets while exchange reserves drain—the network's vital signs flash green even as paper Bitcoin wobbles.
When the suits get cold feet, the cypherpunks double down. The real question isn't whether ETFs matter—it's whether they'll even survive the next market cycle.
Glassnode, a platform for on-chain crypto analytics, unveils the latest Market Pulse report through its official X account. According to this report, last week, traders observed a sharp decline of 80% in the inflows of the Bitcoin ETF. Despite this, on-chain metrics and key derivatives highlight a clear sign of strength.
#Bitcoin ETF inflows dropped 80% last week.
But derivatives positioning remains elevated and on-chain data shows nearly all $BTC supply is still in profit.
This week’s Market Pulse unpacks the shifting balance of conviction across market participants: https://t.co/4LBrKjNh0f pic.twitter.com/NavS6wo7nI
The traditional finance (TradFi) takes this scenario as a breather, while crypto enthusiasts and market participants are actively in motion. The situation underscores a complexity in the ecosystem by showing a shift in sentiments.
ETF Outflows, Subjecting Glassnode to Showcase Mixed Signals
From the data revealed by Glassnode, there is a noticeable decrease in momentum. The Relative Strength Index (RSI) shows a weak short-term strength by sharply falling to 51.7. Meanwhile, spot Cumulative Volume Delta (CVD) signals improvement as compared to the decline in ETF inflows.
This incentive indicates the stepping-in and stillness of decision by dip-buyers. The $45.6 billion high future Open Interest (OI) takes the Leveraged traders to the forefront, exhibiting their betting on big despite of uncertain market.
The 96.9% of the circulating bitcoin remains profitable, interestingly. With the continuous fading momentum, this circulation shows a potential commitment to uplifting the selling pressure, not yet triggering panic.
The Realized Cap Change goes high to 6.6% which shows the continuous capital FLOW of the network. The options data reveals a mild bullish tilt in this situation, having a positive delta skew. The volatility of it spreads to 77% of the increase, which uncovers the increased expectations of price movement ahead.
Bulls Stay the Same, But On-Chain Activity Dips
There is some cooling in on-chain activity, dropping active addresses to 2.4% while a decrease of 23% in transfer volumes. The ratio of Short-Term Holder to Long-Term Holder (STH/LTH) surges with the increase in Hot Capital Share. This advancement highlights a must-under-the-surface activity that renews speculations.
With the complexity in the overall Bitcoin market structure, the analysis by Glassnode clearly speaks of cautious optimism. There is hesitation by TradFi, but strong engaged signals by crypto insiders. It could be determined by the coming week whether the bulls can regain control or there will be a deeper pullback due to the weight of profit-taking.
