Bitcoin ETFs Extend Longest Win Streak Since September, But Spot Demand Lags

💡 DMK Insight

Bitcoin ETFs pulling in $2.1 billion is impressive, but here’s the catch: on-chain demand is showing signs of weakness. The influx into ETFs suggests institutional interest, which could drive prices up in the short term. However, the warning about ‘net negative’ on-chain demand raises red flags. If on-chain activity declines while ETF inflows rise, it might indicate that investors are more interested in holding Bitcoin through ETFs rather than engaging in actual transactions on the blockchain. This could lead to a disconnect between price and real market activity. Traders should keep an eye on on-chain metrics like transaction volume and active addresses to gauge the health of the market. Also, watch for how Bitcoin reacts around key technical levels. If it struggles to hold above recent highs, it could signal a potential pullback. The next few days will be crucial; if on-chain metrics don’t improve, we might see a shift in sentiment that could affect both spot and futures markets.