Bitcoin News Today: Bitcoin ETF Outflows Trigger 70% Drop in Active Addresses as Short-Term Correction Looms

Bitcoin’s recent price movement reflects growing caution among investors as the cryptocurrency faces potential short-term volatility. The digital asset surged to a record $122,054 on July 14, 2025, triggering widespread profit-taking and a reversal in institutional demand dynamics. Spot Bitcoin ETFs, which had seen six consecutive weeks of inflows, recorded $199 million in outflows this week, signaling a shift in institutional positioning [1]. This pullback, coupled with declining on-chain activity, has raised concerns about a near-term correction.

The ETF outflows highlight a critical shift in institutional sentiment. For months, institutional investors had steadily accumulated Bitcoin through ETFs, but the recent outflows suggest a cooling of risk appetite. Analysts note that even long-term holders—often dubbed as having “diamond hands”—appear to be locking in gains after the price milestone [1]. This trend is amplified by weak demand metrics, including a 70% drop in active unique addresses on the Bitcoin network over the past week, closing at 721,086 on July 21 [2]. Lower on-chain activity typically correlates with reduced market participation, increasing the likelihood of further downward pressure.

Technical analysis adds to the bearish outlook. Bitcoin’s price has remained range-bound since its July 14 high, oscillating between $116,952 (support) and $120,811 (resistance). A failure to hold above $116,952 could trigger a test of $114,354, according to on-chain data [3]. However, sustained buying pressure could push the price back toward its all-time high if new demand emerges.

The interplay between ETF flows and on-chain metrics underscores broader market dynamics. ETF outflows coincide with a slowdown in retail activity, suggesting a synchronized pause in both institutional and retail participation. This dual retreat often precedes short-term corrections, as liquidity tightens and selling pressure builds. While long-term bullish fundamentals remain intact, the immediate outlook is clouded by profit-taking and weakening demand.

Market participants are advised to monitor ETF inflow trends and on-chain indicators closely. A reversal in these metrics could signal renewed institutional confidence, potentially stabilizing Bitcoin’s price. However, continued outflows and declining address activity may prolong the correction phase. Analysts caution that the current environment reflects a transitional phase rather than a structural bearish shift, with key resistance and support levels serving as critical benchmarks for the coming weeks [3].

Source:

[1] [Bitcoin Faces Potential Short-Term Correction Amid ETF Outflows and Declining Institutional Demand] (https://en.coinotag.com/bitcoin-faces-potential-short-term-correction-amid-etf-outflows-and-declining-institutional-demand/)

[2] [BTC Number of Active Addresses] (https://en.coinotag.com/bitcoin-faces-potential-short-term-correction-amid-etf-outflows-and-declining-institutional-demand/)

[3] [BTC Price Analysis] (https://en.coinotag.com/bitcoin-faces-potential-short-term-correction-amid-etf-outflows-and-declining-institutional-demand/)