Bitcoin News Today: Institutional Exodus and Retail Resilience Create BTC Tug-of-War at $111K

Bitcoin’s spot market has shifted toward a neutral stance, signaling waning conviction among traders near the $111,000 price level, according to recent on-chain data from Glassnode. The Cumulative Volume Delta (CVD), a metric that measures net buying or selling pressure across major trading venues, has reverted to a balanced state, diverging from the strong buyer dominance seen in April 2025. This shift suggests a cooling of aggressive accumulation and a potential pause in upward momentum, prompting traders to exercise caution as Bitcoin nears a key resistance level [1].

The neutral CVD reset aligns with broader patterns observed in spot and futures markets. While retail traders have shown resilience by buying dips across platforms like Binance and Coinbase, larger institutional and whale-sized traders have remained net sellers, particularly in the $111,000 zone. This dynamic indicates a tug-of-war between short-term traders seeking to capitalize on perceived bargains and larger holders reducing positions. The resulting equilibrium may lead to increased volatility or a consolidation phase as market participants reassess their strategies [2].

On-chain data from CryptoQuant further supports the narrative of reduced buyer conviction. The Spot Taker CVD, a 90-day indicator tracking net buyer or seller activity, has turned negative, flipping from months of buy-side dominance. The Taker Buy/Sell Ratio has also dropped below its long-term baseline of 1.0, indicating that selling pressure now outweighs buying interest. This trend suggests a weakening sentiment in the spot market, with historical data showing that such indicators often precede price corrections [3].

Simultaneously, U.S.-based Bitcoin spot exchange-traded funds (ETFs) have emerged as a dominant force in the market. These funds now regularly generate $5 billion to $10 billion in daily volume, surpassing most crypto exchanges. Julio Moreno, head of research at CryptoQuant, noted that ETFs reflect growing institutional demand, with BlackRock’s iShares Bitcoin Trust (IBIT) now holding more Bitcoin than major exchanges like Coinbase and Binance. This institutional shift has implications for market liquidity and price discovery, as ETFs increasingly influence BTC price movements [4].

Despite this structural transformation, Bitcoin ETF flows have experienced a slowdown in recent weeks. Over the past four trading days, the 11 U.S. spot BTC ETFs recorded a total inflow of just $219 million, following a net outflow of $1.2 billion over the previous six sessions. This decline in capital inflows has coincided with a 11% correction in Bitcoin’s price from its all-time high of $124,128 to $111,636. Analysts warn that without sustained inflows, the ETF-driven bullish narrative could falter, potentially dragging BTC below the critical $110,000 level [5].

Conversely, Ethereum ETFs have outpaced Bitcoin in recent inflows, capturing $455 million in net inflows on August 26 compared to just $88 million for Bitcoin. This divergence suggests a strategic rotation among institutional investors toward yield-bearing assets like staked Ethereum. With Ethereum ETFs now holding 3.775 million ETH and nearing $16.5 billion in assets under management, the trend highlights a broader appetite for diversification within the digital asset space [6].

Source:

[1] Bitcoin (BTC) CVD Turns Neutral at $111K (https://blockchain.news/flashnews/bitcoin-btc-cvd-turns-neutral-at-111k-spot-spot-market-bias-resets-as-april-buyer-dominance-fades-glassnode)

[2] Bitcoin trend reversal to $118K or another drop to $105K (https://cointelegraph.com/news/bitcoin-trend-reversal-to-118k-or-another-drop-to-105k-which-comes-first)

[3] Bitcoin Braces for Another Dip as On-Chain Data Warns of Spot and Futures Selloffs (https://cryptonews.net/news/bitcoin/31517230/)

[4] US ETFs now a major source of Bitcoin spot trading volume (https://cointelegraph.com/news/bitcoin-etfs-take-share-spot-trading-volume)

[5] Bitcoin ETFs Need Almost $1B Inflows to Sidestep Second-Worst Performance on Record (https://finance.yahoo.com/news/bitcoin-etfs-almost-1b-inflows-113814157.html)

[6] Bitcoin ETF Inflows: BTC-USD Rebounds to $111K as Institutional Rotation Shifts Market Dynamics (https://www.tradingnews.com/news/bitcoin-etf-inflows-btc-usd-recovers-to-111k-usd)