Net demand for Bitcoin has sharply decreased by 857,000 BTC despite institutional purchases, reflecting weakening growth fundamentals.
Trading, participation from whales, and CDD metrics indicate that market confidence is declining, signaling risks for Bitcoin's bullish momentum.
MAIN CONTENT
A decrease in net demand by 857,000 BTC weakens Bitcoin's rebound potential despite 748,000 BTC being accumulated by institutions.
Whales offloading heavily, an increase in CDD, and reduced trading reflect weakened market confidence.
Liquidation risks concentrated around the 110,000 USD level increase technical pressure, hindering breakout momentum.
Are whales losing confidence as net cash flow declines sharply?
Large holders have significantly reduced their positions, with net cash flow dropping over 1300% in 7 days, reflecting a prominent negative trend. Despite several short-term price increases, this cash flow has not reversed, indicating structural hesitation.
Negative net cash flow from large addresses indicates skepticism about Bitcoin's short-term prospects.
CryptoQuant, Report for July 2025
Price stability around 96,000–97,000 USD is not enough to sustain as whales continue to exit the market.
Source: IntoTheBlock
Why are long-term holders starting to move BTC?
The Coin Days Destroyed (CDD) index increased by 7.06%, indicating that older BTC is being traded more than usual, often a sign that veteran investors are preparing to exit.
CDD is a measure of the longevity of coins used, reflecting the holding or selling sentiment of long-term investors. When this metric increases, potential supply from long-term holders rises, which can put pressure on prices.
An increase in CDD often accompanies sell-offs when the market is uncertain or has become too hot.
CryptoQuant, Analysis for July 2025
Source: CryptoQuant
Does a sharp decline in trading weaken Bitcoin's momentum?
On-chain trading activity of Bitcoin has dropped to only 97,100 transactions, a multi-month low, reflecting a decline in retail user participation and network activity.
Despite institutions ramping up purchases, the indifference of the majority of users leads to a lack of solid growth foundations and diminishes most natural demand.
Source: Santiment
Is the positive funding rate strong enough to hold the market amid weak demand?
The Funding Rate remains slightly positive at +0.008%, indicating that derivative traders have a slightly optimistic but not strong sentiment.
The low value reflects a hesitant sentiment, lacking strong long participation, consistent with the trend of decreasing demand and overall market confidence.
Source: Santiment
What are the risks for traders using leverage around the 110,000 USD price range?
Binance's liquidation map indicates a high liquidation concentration just above the 110,000 USD level, where many traders hold large leveraged long positions.
Prices hitting this level could trigger a mass liquidation effect, increasing volatility instead of a sustainable breakout, creating technical and psychological resistance.
Source: CoinGlass
Can Bitcoin sustain price increases without genuine demand?
Although the cash flow from institutions is stable, Bitcoin still faces downward pressure from low transaction volumes, reduced whale confidence, and hesitation in the derivatives market.
As long-term holders begin to restructure and liquidation risks remain high at critical price levels, the likelihood of breaking ATH is almost low without a strong recovery in fundamental demand.
Frequently Asked Questions
How does a decrease in net demand affect Bitcoin? A decline in net demand weakens the bullish foundation, indicating reduced buying power, posing medium-term downside risks.
Why are whales offloading? Whales are offloading due to doubts about short-term bullish prospects, especially as net cash flow remains negative.
What does an increase in CDD indicate? An increase in CDD suggests that older BTC is being moved, often a sign of long-term holders selling or preparing to exit positions.
How does reduced trading affect the market? Decreased trading reduces liquidity and makes it hard to create sustainable upward momentum due to the lack of widespread user participation.
What is the risk of liquidation when the price is around 110,000 USD? This is a concentration point for many leveraged long positions, and if the price breaks through, it could trigger a cascade of liquidations, increasing volatility and downward pressure.
Source: https://tintucbitcoin.com/bitcoin-kho-han-cau-du-etf-tang-truong/
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