Bitcoin Consolidation Continues as ETP Demand Remains Strong
Bitcoin has entered a consolidation phase following its recent sharp rally over two weeks. According to K33, Bitcoin's average daily spot volume declined by 35% last week, falling from $4.8 billion to $3.1 billion.
This decline is attributed to the unusually active period during BTC's 23% rally, which saw market activity spike significantly before returning to a more stable level.
Despite this drop in spot volume, Bitcoin's seven-day volatility has softened, decreasing to 1.6%, below its yearly median of 1.8%. Furthermore, its relationship with traditional assets has become increasingly notable, with its 90-day correlation with gold reaching an all-time high of 0.52.
The changing correlation environment has strengthened the narrative around Bitcoin as a potential 'debasement and liquidity hedge.'
Meanwhile, demand through Bitcoin exchange-traded products (ETPs) remains significant, with global Bitcoin ETPs absorbing 52,152 BTC in August, marking the strongest monthly inflow since November 2024.