Declining Bitcoin ETF Investments: Anticipating a Significant Market Adjustment?
In the ever-evolving world of cryptocurrencies, the Bitcoin market continues to captivate traders and investors alike, even amidst the possibility of a short-term correction. This correction, as of late July 2025, is influenced by several key factors.
Firstly, the reactivation of dormant whale wallets has increased selling pressure. Large Bitcoin holders, often referred to as whales, who had long-inactive wallets have recently moved significant amounts of BTC onto exchanges. For example, one whale moved around 3,782 BTC (~$447 million) within 12 hours, and other dormant wallets collectively moved over 10,000 BTC.
Secondly, long-term holders (LTHs) have started to sell, especially when Bitcoin traded near $120,000. Similar activity in early 2025 coincided with a price drop below $75,000. Continued profit-taking by LTHs could deepen the correction.
Thirdly, there is an "air gap" in accumulation between $110,000 and $115,000, meaning less transaction volume in that zone. This gap may cause price to correct toward $110,000 to fill the void and validate that level as support.
However, not all signs point to a bearish outlook. Macroeconomic factors and potential Federal Reserve policy changes may prompt short-term holders to take profits, contributing to a milder near-term correction or consolidation without large institutional sell-offs.
Moreover, Bitcoin has remained above key support zones ($117,000-$119,000), and Fibonacci and Elliott Wave analyses suggest potential growth to $128,000–$149,000 by end of August 2025. This implies the correction may be a healthy consolidation before a new rally.
In this uncertain climate, traders are keeping an eye on the trend, ready to pivot quickly. The derivatives markets, specifically CME futures contracts, still show high open interest, indicating continued interest in Bitcoin. The Bitcoin market could be experiencing a period of consolidation before rebounding, if new demand sources do not materialize.
It's important to note that 95.8% of the Bitcoin supply remains in profit, suggesting a possible imminent profit-taking. In the absence of new demand sources, the market could experience consolidation before rebounding.
Institutional investors appear to be taking a break from Bitcoin ETF investments, with inflows decreasing by 80% compared to the previous week. However, the arrival of new institutional, retail, or emerging country demand sources could reignite the bullish dynamic.
In conclusion, while the Bitcoin market is showing signs of a possible short-term correction, the structural robustness of the market suggests a potential imminent profit-taking. Investors and traders must exercise caution due to the ambiguous signals in the market. The author's goal is to make cryptocurrencies understandable for everyone through clear and accessible articles.
Analyzing on-chain data, capital flows, and institutional behaviors remains crucial for anticipating market movements in this unstable context. The cryptocurrency sector has seen particular attention due to recent movements in Bitcoin ETF flows. Traders continue to show interest in derivatives markets, despite a potential short-term correction.
In the context of the Bitcoin market, heightened selling pressure is observed due to the reactivation of dormant whale wallets and large-scale selling by long-term holders, potentially contributing to technology-driven investments in the evolving world of cryptocurrencies. Meanwhile, analyses suggest a promising outlook for finance in the longer term, with Bitcoin showing potential growth and remaining supported by high open interest in derivatives markets.
