ETF Inflows Fail to Spark Bitcoin Bull Run Amid Weakening Spot Demand

Bitcoin's spot demand has been weakening despite ETF inflows since July 14. According to CryptoQuant, the 30-day Bitcoin spot demand metric dropped from -80k BTC in early July to -170k BTC. This decrease in demand has kept prices relatively stable around $65k due to short-covering in the derivatives market and easing short-term holder sell pressure.

Crypto analyst ScenarioX noted that while ETF flows have been positive, they have not been enough to trigger a true macro bullish turnaround for Bitcoin traders. The injection of capital from ETF inflows has failed to substantially elevate prices yet.

A reading of the short-term price structure highlighted the importance of the $67.3k local swing high. Additionally, Axel Adler Jr.'s Bitcoin New Investors metric remained near its yearly lows, measuring the share of capitalization concentrated among coins younger than 1 month. This metric indicated an increase in new capital but not enough strength to point toward a BTC trend reversal.