Bitcoin's July Outlook Hinges on Stabilizing Demand and ETF Flows

Bitcoin's recent decline has been substantial, with an 18% drop in just a few days. According to on-chain data, one key factor behind this nosedive is the lack of demand for BTC.

Ali Martinez, a popular analyst, pointed out that bitcoin accumulation levels have stalled for seven months, and apparent demand has remained negative for 208 consecutive days, dropping to -273,000 BTC. This indicates that real spot market demand has fallen, as new BTC creation is being matched by the movement of existing inventory.

The trend change came after a massive liquidation event in early October, when over $19 billion was wiped out in a single day. Since then, the metric has remained in negative territory, suggesting that selling pressure continues to outpace new capital inflows.

US institutional demand is another crucial factor that needs to change for BTC to have a more robust and favorable July. The spot Bitcoin ETFs have been on a massive withdrawal streak for weeks, with investors pulling out nearly $700 million from the funds last Thursday.