- ETF inflows surged $970M in three days, but stablecoin liquidity dropped by 3.34%.
- MVRV and Stock-to-Flow both declined, signaling caution despite bullish institutional interest.
Institutional appetite for Bitcoin [BTC] has resurfaced, with ETFs pulling in over $970M in just three days—reversing weeks of capital outflows.
This sharp rebound in inflows coincides with Bitcoin trading at $104,750.20 after a 2.67% daily drop.
The capital influx during a price dip suggests renewed conviction among large investors. While this trend may ignite optimism, broader market sentiment remains conflicted.
Are stablecoins running dry?
The Exchange Stablecoin Ratio currently sits at 5.69 after falling by 3.34%, reflecting shrinking spot buying power.
A lower stablecoin presence on exchanges often signals reduced liquidity for immediate purchases, weakening short-term upside potential.
This decline could counteract bullish pressure from the ETF inflows. Therefore, unless stablecoin supply recovers, demand-driven rallies might lose steam.
Furthermore, retail traders may stay sidelined due to limited dry powder, leaving institutions to do the heavy lifting in supporting BTC’s price action.
Source: CryptoQuant
Has BTC’s scarcity narrative taken a hit?
BTC’s Stock-to-Flow Ratio has declined significantly by 22.22%, dropping to 706.78K. This metric measures scarcity by comparing circulating supply to new issuance.
A sharp decline suggests an increased rate of new supply or reduced circulation stress, both of which can undermine bullish valuation models.
While the long-term trend still favors scarcity-driven value, the near-term shift could dampen investor expectations.
Thus, despite ETF enthusiasm, market participants may demand stronger fundamentals before validating extended upside potential.
Source: CryptoQuant
Is profit-taking weighing BTC down?
The MVRV Ratio—a gauge of profit-taking behavior—now stands at 2.21, down 3.08% in the past day. This drop signals that many holders are still in profit but are beginning to offload.
Historically, MVRV values above 2.0 often precede local tops, which explains why some traders are securing gains.
Therefore, if selling pressure increases, BTC could struggle to maintain its recent ETF-fueled momentum.
This ongoing shift in risk appetite adds to the complex interplay of bullish and bearish forces.
Source: CryptoQuant
Is BTC losing DeFi ground?
BTC’s Total Value Locked (TVL) in DeFi has slipped 3.66% in 24 hours, now at $6.354B. This drop reflects reduced engagement in BTC-backed decentralized finance protocols.
It may signal a broader risk-off sentiment or investor migration to alternative chains. Consequently, a weakening presence in DeFi undermines BTC’s role as a capital-efficient asset in on-chain ecosystems.
Source: DefiLlama
Although ETF inflows show promise, falling DeFi TVL underscores a less enthusiastic posture in real economic utility within the crypto space.
ETF inflows hint at strong institutional conviction, but caution persists across other indicators.
With stablecoin buying power, valuation ratios, and DeFi activity all trending down, the market appears conflicted.
For BTC to sustain a new leg up, these on-chain and ecosystem metrics must begin supporting the narrative of renewed bullish strength.
