Key Takeaways

Bitcoin’s ETF inflows tanked 80%, but traders remain active, with Open Interest elevated and 95.8% of supply still in profit, setting the stage for either fresh demand or short-term correction risk.

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Bitcoin [BTC] had a slow week, but not without signals worth watching.

BTC ETF inflows dropped a staggering 80% compared to the previous week — the sharpest decline in months, according to the recent Glassnode reports.

For a market largely driven by institutional enthusiasm, that kind of pullback is hard to ignore.

Derivatives heat stays on

Yet, despite that, derivatives markets were still running hot. Open Interest in CME Futures remains elevated, according to CryptoQuant data.

This suggests that traders — especially short-term speculators — are still positioned in anticipation of a further rally, even as ETF flows decelerate.

Profit levels remain high but so do risks

Adding another layer to the story, on-chain data shows 95.8% of BTC supply is still in profit. That is a powerful sign of long-term strength — but also a warning.

When nearly every holder is in the green, the risk of profit-taking increases, especially if momentum stalls.

This could, in turn, spark panic mode among the short-term holders, and as a result, it could ultimately initiate a short correction on the BTC price chart.

That possibility is compounded by another soft metric: Active Addresses.

Weekly activity has slipped from early July highs, hinting that large wallet holders are hesitating, neither selling in panic nor buying aggressively. It’s a “wait-and-watch” lull.

What the market’s mixed signals mean for BTC

The takeaway to Bitcoin investors and traders alike seems to be this: BTC is caught in a moment of hesitation. Institutional buyers are taking a breather, on-chain activity is softening, but traders are not ready to throw in the towel just yet.

With nearly all coins still in profit, any further weakness could prompt a wave of sell pressure. The next move likely hinges on whether fresh demand — either from retail or institutions — steps in soon.

Otherwise, BTC may face a short-term correction before its next rally.

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