Bitcoin Slides Amid Elevated Selling Pressure and Weakening Demand for ETFs

Bitcoin's price has fallen around 5% over the past five days to trade around $75,000-$76,000. The demand for U.S. spot Bitcoin ETFs has weakened, with funds shifting towards net distribution and a decline in weekly trading volume from $12.1 billion to $8.7 billion.

The derivatives market is also showing signs of selling pressure, with elevated leverage remaining stable but options open interest holding near $40 billion above the upper band.

However, on-chain activity has slowed down slightly, with fee volume falling to $202.6K and transfer volume to $4.0 billion, while active addresses have decreased to 610.8K. Capital inflows remain constructive, with a monthly change in realized cap increasing to 1.0%, well above the upper band of 0.2%.

Despite this, BTC holders are still broadly profitable, although profitability is gradually weakening, with around 66.2% of supply currently in profit and an unrealized profit-to-loss ratio standing at 8.4%. The realized profit-to-loss ratio has fallen from 1.0 to 0.5 but remains positive.

The market continues to absorb selling pressure at progressively lower price levels, with no clear signs of panic. New capital is entering the market more cautiously, and Bitcoin's price remains slightly above two key moving averages.