Bitcoin Spot Demand Weakens as ETF Inflows Fail to Spark Rally

Bitcoin's spot demand has weakened significantly since July 14, despite positive ETF inflows. According to CryptoQuant, the 30-day Bitcoin spot demand metric has dropped from -80k BTC in early July to -170k BTC currently.

This drop-off in demand is not reflected in prices, which have remained stable around $65k due to short-covering in the derivatives market and easing short-term holder sell pressure.

Crypto analyst Axel Adler Jr. notes that the turnaround in ETF flows has not been enough to confirm a bullish reversal. The Bitcoin New Investors metric remains near its yearly lows, indicating stabilization rather than a trend reversal.

Axel Adler Jr. also points out that the short-term holder spent output profit ratio (STH SOPR) is below 1.0, indicating that short-term holders are still realizing losses and not participating in new capital.