The Bitcoin rally to a new all-time high of $123,000 has triggered a wave of profit-taking across the market. On-chain data shows signs that institutional appetite may also be cooling.
After a strong six-week run of net inflows into U.S.-listed Bitcoin spot ETFs, this week has seen a reversal, with several funds recording outflows.
According to SosoValue data, Bitcoin spot ETFs have reversed their six-week streak of net inflows, recording outflows totaling $199 million this week.
The shift marks a significant change in sentiment among institutional investors, who had consistently accumulated exposure to BTC via ETFs during much of the recent rally.
This pullback follows BTC's rise to a new all-time high of $123,000 on July 14. Several investors who had been waiting for a decisive break above $120,000 seem to have taken the opportunity to exit their positions and secure profits.
ETF flows are widely considered a key indicator of institutional confidence. A sharp drop in inflows, especially after a sustained accumulation, suggests that institutional risk appetite is cooling.
This means that even experienced holders, often seen as having 'diamond hands', seem to be taking profits. While this is not necessarily a bearish signal in the long term, it does reflect growing short-term caution in the market.
Furthermore, Glassnode data shows weakened on-chain activity, which could exacerbate BTC's downside risks. According to the data provider, the number of active unique addresses on the Bitcoin network has gradually decreased over the past seven days. Yesterday, it closed at a weekly low of 721,086 addresses.
When institutional capital begins to pull back and retail activity simultaneously slows, it indicates a broader pause in the market, increasing the chances of a short-term BTC price correction.
