Bitcoin Struggles to Break Higher as ETF Demand Weakens: Bitfinex Alpha

The latest data shows weaker ETF demand and lower leverage, with key levels now likely to shape Bitcoin’s next move. Bitcoin (BTC) was trading near $84,000 after another failure to break above its yearly open at $87,700. Bitfinex said the next move will depend more on renewed spot demand than on increased futures leverage. Bitcoin had reached $87,200 on October 2, before retreating below the key level. The rejection marked the third failed breakout in the past ten days. The question now is whether it will flip the trend. Leverage Drops as Demand Slows According to Bitfinex, futures activity drove much of the move, with open interest rising by $2.1 billion before the September payrolls report. Futures open interest then fell by $1.5 billion as traders closed positions after the data. Aggregate futures open interest now stands at about 625,000 BTC, its lowest level since January 1. The decline suggests lower leverage. At the same time, spot demand has also weakened, with US spot Bitcoin ETFs recording $241.1 million in net inflows from September 28 to October 2. That was about 90% below the $2.39 billion recorded a week earlier. The nine-day inflow streak also ended on September 30 w...