Bitcoin Rally Hits Roadblock as ETF Flows Slow and Supply Rises
The recent Bitcoin rally was marked by a nine-day streak of ETF inflows, which provided a steady source of demand for the cryptocurrency. However, this trend has now come to an end, with money leaving ETFs and available supply increasing.
Binance's exchange balances have also climbed to their highest level in 2023, indicating more coins are being stored on the platform. This shift changes the balance, as institutional buying has paused while supply is rising.
Analysts argue that recent buying has leaned heavily on leveraged positioning rather than fresh spot accumulation, making every shift in sentiment crucial. The market must work through this new dynamic, where leverage can create impressive rallies but rarely provides durable support when momentum slows.