Bitcoin Rally Slows… Short-term Buying Weakens

Son Min

Summary

Bitcoin has ended months of gains and entered a correction phase.
Investors are moving funds to derivatives rather than spot, responding defensively.
A short-term market correction is underway, and a recovery in spot demand and stability in the derivatives market are key for a new rise.

Bitcoin (BTC) has ended months of gains and entered a correction phase. Investors are moving funds to derivatives rather than spot, showing defensive behavior.

On the 24th (local time), CoinDesk reported that Bitcoin was trading around $111,000. It has fallen from a recent peak of $126,000, and ETF inflows have also slowed.

Glassnode analyzed, "the average purchase price of short-term holders is about $113,000, and if that level breaks, investor sentiment could weaken." Long-term holders have also been selling more than 22,000 BTC per day since July, benefiting from the rally.

CryptoQuant said, "Market funds have not left, but are moving into derivatives trading such as futures and options rather than spot." The increase in exchange reserves is also interpreted as a move toward selling.

Experts say the market is in a short-term adjustment phase, and that a recovery in spot demand and stabilization of the derivatives market are needed for a new rise. The timing of the Federal Reserve (Fed)'s rate cuts or ETF fund inflows could be likely turning points.

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