Bitcoin Spot Demand Crashes to $220M as ETF Inflows Decline 25% – Is the Bull Run Dead?

Bitcoin’s recent price momentum has significantly weakened, with spot market demand plummeting from -$107.1M to -$220.0M.

This dramatic shift resulted from mounting sell-side pressure and has sparked widespread concern among market participants about whether the crypto bull run is dead.

The deteriorating liquidity conditions have also impacted the ETF market, which experienced a substantial 25% drop in record inflows to $269.4M, falling well below the lower threshold, according to Glassnode’s latest Bitcoin market analysis.

Glassnode’s August 4 report showed that spot market conditions deteriorated markedly as the RSI declined from 47.4 to 35.8, falling beneath its lower band and indicating oversold conditions.

Off-chain indicators show broad cooling:

• RSI dropped to 35.8 – oversold zone
• Spot CVD fell to -$220M → intensified sell pressure
• Futures funding -33% WoW
• Options skew spiked → rising demand for downside protection
• ETF inflows down -25% pic.twitter.com/y9AmQ1D3iC

This weakness coincided with a reduction in spot volume from $8.4B to $7.5B, suggesting a cooling of Bitcoin’s euphoric phase as the asset pulled back from its $123,218 peak to $110,000 lows on August 5.

These developments, combined with over $800 million in Bitcoin ETF outflows, representing the second-largest single-day withdrawal in these products’ history as previously reported, have intensified fears that the crypto market may have peaked and bear market conditions are emerging.

Even traditionally optimistic crypto investors who typically view weak price action as buying opportunities have begun taking profits and reducing their risk exposure.

On August 3, crypto billionaire and Maelstrom Fund CIO Arthur Hayes disclosed that he had recently liquidated $8.32 million worth of ETH, $4.62 million in Ethena (ENA), and $414,700 of the meme token Pepe (PEPE), with $22.95 million now held in USDC stablecoin, according to Arkham Intelligence data.

When influential whales and key opinion leaders are actively booking profits, it naturally raises questions about whether the market has reached its cyclical peak.

However, industry experts like MEXC Exchange Chief Analyst Shawn Young maintain that the current crypto bull cycle remains intact.

When Cryptonews questioned him about market conditions, Young explained that “Bitcoin’s struggle to maintain key levels and increased demand for downside protection through the options market indicates a more cautious, risk-averse trading environment rather than complete capitulation or structural breakdown.“

He emphasized that while ETF outflows from Bitcoin products reflect near-term uncertainty, the long-term bullish narrative remains fundamentally sound.

Young outlined his bullish thesis to address market concerns, stating that the bull market framework stays valid as long as Bitcoin maintains above $100,000 and institutional demand across digital assets doesn’t completely evaporate.

BULL MARKET IS NOT OVER

Last 3 Bitcoin bull run cycles:

2013: 371 days to peak

2017: 504 days to peak

2021: 548 days to peak

Each cycle is getting LONGER.

This means the real blow off top for this cycle will be around Nov 2025.

Don’t let whales shake you out. pic.twitter.com/25WnBYnirs

However, he cautioned that a decisive break above $116,000 on Bitcoin or fresh catalysts from the Federal Reserve or global liquidity expansion would be necessary for a push toward new all-time highs.

Young also provided insights into the evolving corporate treasury landscape in crypto.

Companies like BitMine (currently the largest public holder of ETH with approximately $3B), VERB, and Sequans have moved beyond experimental approaches to implement comprehensive blockchain-native treasury strategies.

The trend extends beyond Bitcoin alone. Ethereum, Toncoin, BNB, and SOL are increasingly being incorporated as companies align their reserves with the digital finance ecosystem.

Young referenced Bernstein projections suggesting that corporate Bitcoin investments could reach $330 billion by 2029, a figure comparable to substantial traditional finance sectors.

Ray Youssef, CEO of Bitcoin P2P marketplace NoOnes, also challenged assertions that the crypto bull market is over.

Youssef emphasized that recent market corrections represent natural consequences of overheating in a market still highly susceptible to macroeconomic narratives.

According to him, the market is experiencing its first genuine test of structural conviction. ETF outflows and declining spot volumes suggest this correction may have additional room to develop in the near term.

“However, bull markets don’t conclude when price action stagnates; they end when market conviction collapses.”

“Nevertheless, regulatory clarity is improving, stablecoin infrastructure is maturing, and real-world asset tokenization is accelerating.“, Youssef noted.

The War Chief and a few others remain true.

What about you ? https://t.co/2fQJag7y1A

These developments have reinforced the bull cycle’s structural integrity.

From a technical perspective, Bitcoin’s 4-hour chart (BTC/USD) shows that significant liquidity has accumulated in the purple zone around $116,000–$118,000, with fair value gaps (FVG) marked by repeated wicks and rejections.

Should a near-term bullish move fill this FVG and test overhead liquidity, the price will likely revisit the lower green FVG zone near $111,000–$112,000.

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