Bitcoin Spot Demand Declines Sharply Amidst Market Stability, Raising Concerns Over Potential Decline

Bitcoin spot market demand has weakened significantly despite relatively stable price action in recent weeks, according to analytics platform CryptoQuant.

The 30-day spot demand metric had briefly rebounded to approximately -80,000 BTC in early July but subsequently declined to nearly -170,000 BTC, signaling renewed weakness in direct buyer interest.

Price Stability Supported by Derivatives Activity

Market observers note that Bitcoin’s price stability stems largely from reduced short-term selling pressure and leveraged short covering in derivatives markets rather than organic spot demand growth. CryptoQuant contributor ScenarioX highlighted that while derivatives activity has temporarily cushioned downward pressures, such dynamics alone cannot sustain a prolonged bullish trajectory.

Leveraged Recovery Risks Long Liquidation Event

Analysts warn that the current recovery momentum, primarily fueled by derivatives-driven activity, remains vulnerable to sharp corrections. Without meaningful spot market inflows, leveraged long positions may face significant liquidation risks if selling resumes, potentially accelerating downward price movement.

Extended Sideways Trading Persists

CoinMarketCap data shows Bitcoin trading at approximately $63,941, with a 1.2% decline over the past 24 hours but a 1.91% gain over the past week. Monthly performance remains muted, with only a 0.41% increase, reflecting an extended period of sideways trading. The cryptocurrency is down 27% year-to-date.

Spot ETF Inflows Show Mixed Signals

Analytics firm Santiment reports that U.S. spot Bitcoin ETFs recorded $264.4 million in net inflows over the past two weeks, ending a prolonged outflow trend from May to June. Fidelity’s FBTC led inflows with $166 million, followed by ARKB ($91.8 million) and BlackRock’s IBIT ($138.9 million). However, analyst IT Tech cautions that while 2024 saw over 500,000 BTC in cumulative ETF inflows, 2025 peak flows reached 250,000 BTC, with 2026 currently showing around 120,000 BTC in net outflows. This suggests ETF-driven demand has waned significantly unless offset by alternative capital sources.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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