Bitcoin's Support Levels Tested as New Capital Inflows Slow
Bitcoin's realized market cap trend has reversed, indicating a slowdown in new capital inflows and weak demand. This is according to data from September 14, which showed that Bitcoin had maintained an increase for 27 consecutive days before recording negative growth on September 15.
The indicator calculates the total on-chain valuation based on bitcoins that have recently been traded, reflecting changes in the capital status of holders when transferring assets at different prices. Despite this trend reversal, Bitcoin prices are holding near key support levels.
U.S. spot ETFs experienced two consecutive days of massive outflows, with a total net outflow of $746.3 million on September 15 and 16. However, Bitcoin prices remained close to the 'true market mean' of $76,700, as defined by Glassnode.
JPMorgan has proposed that investors unwinding defensive positions such as put options and short selling could provide support for Bitcoin ETFs, potentially exceeding that of gold. This argument is based on a comparison of position structure and fund flows between the two assets.