Key Takeaways
- Bitcoin fell below key cost-basis levels, signaling potential market weakness.
- ETF products are seeing outflows, removing a significant source of demand for Bitcoin.
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Bitcoin fell below critical cost-basis levels today as the digital asset faces pressure from declining ETF demand and weakened spot market activity.
Bitcoin ETFs, investment vehicles that provide exposure to Bitcoin’s price through regulated spot products, are experiencing steady outflows that have removed a key source of market demand.
The combination of weak spot demand and ongoing ETF outflows has contributed to Bitcoin breaching important cost-basis thresholds that traders use to gauge market health.
Derivatives markets show muted activity, with declining open interest and elevated demand for downside protection reflecting broader bearish sentiment among traders.
Current derivatives activity shows reduced engagement with a bias toward protective strategies as market participants position for potential further declines.