Bitcoin Slumps as Demand for Spot ETFs Fades Amid Cautious Market

Bitcoin's price has been steadily declining over the past five days, dropping around 5% from its previous level. At the time of writing, it is trading at approximately $75,000, $76,000. This decline in price has been accompanied by a weakening of demand for U.S. spot Bitcoin ETFs.

The funds have shifted towards net distribution, with ETF selling also contributing to a decline in weekly trading volume from $12.1 billion to $8.7 billion. Centralized exchanges have seen a clear imbalance of selling activity, while spot trading volume remains within its typical range.

Despite this, the derivatives market still shows elevated leverage levels. Futures open interest has fallen slightly from $37.1 billion to $36.4 billion, but options open interest remains above $40 billion and the volatility spread continues to move below the lower range.