Bitcoin Price Struggles Below $78,000 Amid Rising Volatility and ETF Demand

Bitcoin's price remains below $78,000 despite strong demand from spot Bitcoin ETFs. Over the past four days, these funds have bought a total of $1.61 billion in BTC. However, long-term holders are selling their coins at an average loss of 20%, which could put pressure on the market.

The price of Bitcoin climbed to $77,600 before pulling back slightly, with the current trading price around $77,178.62. Bitfinex noted that these sales occurred below the buying cost, adding more supply to the market.

Despite this, strong ETF demand has helped absorb the increased supply. Spot Bitcoin ETFs recorded $307 million in net inflows on August 21, extending their streak of daily inflows to five days.

The recent liquidation figures show that caution is still needed, with over $1.6 billion being liquidated over a 24-hour period. Market analyst Darkfost warned that the market is unlikely to move higher in a straight line, pointing to the amount of liquidity sitting below the current market level as a possible area for the price to revisit.