Bitcoin Near $65,000 Mark: Why is the Market Fragile Despite $770 Million in Inflows?

Although the Bitcoin (BTC) price has found stability at the $65,000 level, the contradiction between institutional inflows and weak network data indicates that the market recovery remains fragile.

The leading cryptocurrency Bitcoin (BTC) has managed to achieve stability around the $65,000 mark following recent fluctuations. The latest report shared by on-chain data analysis platform Glassnode reveals that buyer demand in the market is strengthening and institutional interest persists. However, despite this positive outlook, low on-chain liquidity and weak activity suggest that investors should remain cautious.

According to the data, the recovery in the spot CVD indicator, which measures direct buying demand in the market, proves that buyers are beginning to take control. Strong activity is particularly observed on the institutional side; weekly ETF inflows reached $770.6 million, providing significant capital to the market. Additionally, the funding rate, which reflects optimism in the futures markets and indicates the cost for those taking long positions, has turned positive again, supporting bullish expectations.

The Contradiction Between Institutional Interest and Network Data

While institutional inflows are promising, Glassnode data draws attention to the other side of the coin. Transaction volume and user activity on the network remain quite low. In particular, the Hot Capital Share data, which shows the ratio of active capital in the market, remains low, proving that new and retail investor entry is limited. This situation indicates that the price is being sustained by institutional purchases but lacks broad-based liquidity support.

In conclusion, although the recovery process in the Bitcoin (BTC) price continues with institutional support, the weakness in on-chain data causes this rally to remain fragile. The lack of spot liquidity carries the risk of a rapid price decline in the event of potential selling pressure. For the market to gain true strength, a revival in general network activity is expected alongside institutional inflows.