Key takeaways
- BTC is trading above $109,000, down about 5% over the past seven days.
- Demand for spot Bitcoin ETFs has softened after Powell said another rate cut in December is uncertain.
Demand for spot Bitcoin ETFs has weakened
Demand for spot Bitcoin ETFs has cooled in recent days amid the current financial backdrop. Federal Reserve Chair Jerome Powell said earlier this week that it remains unclear whether another interest-rate cut will occur in December.
Weekly data from CryptoQuant shows U.S. investor appetite for spot Bitcoin ETFs has fallen sharply. Spot Bitcoin ETFs recorded a seven-day average outflow of roughly 281 BTC, one of the weakest readings since April. At the same time, inflows into Ether products have stalled over the past week.
The report also noted that Coinbase premiums for BTC and ETH have flattened near zero, while the CME futures basis has dropped to multi-year lows. These indicators suggest both institutional and retail traders are taking profits rather than adding exposure.
According to Glassnode, Bitcoin is still struggling below the short-term holder cost basis around $113,000, while long-term holders continue to distribute roughly 104,000 BTC per month.
Transfers from whale wallets to exchanges have surged to about $293 million per day, signaling profit-taking activity rather than accumulation.
Bitcoin could slide to $102,000 on a break of key support
The 4-hour BTC/USD chart remains bearish and momentum is fragile after a 1% decline in the last 24 hours. The monthly candle will close in a few hours and may provide insight into the market’s near-term direction.
If Bitcoin continues its correction and closes below the 61.8% Fibonacci retracement level at $106,453, the decline could extend toward the October 10 low near $102,000.
The RSI sits at 46, below the neutral 50 level, indicating bearish momentum is gaining traction. The MACD lines are also converging, which supports a bearish trend.
On the other hand, if Bitcoin holds support at $106,453, it could rally toward the 50-day EMA near $112,872 over the coming hours and days.