MAC_D
BTC Correction: Weak Spot Demand and Declining Open Interest
The first factor behind Bitcoin’s recent correction is weakening on-chain spot demand. Bitcoin Apparent Demand has remained in negative territory, while the Coinbase Premium Index has also stayed mostly negative, indicating subdued buying pressure from U.S. investors. Second, demand in the derivatives market has weakened. Since September 22, Bitcoin has remained at a similar price level, while Bitcoin Open Interest has declined by nearly 10%, from approximately $28.8B to $26.0B. This suggests that, amid subdued spot demand, futures traders have also shown limited willingness to take on additional risk. However, the continued upward trend in Bitcoin ETF Historical Holdings is a positive sign, indicating sustained demand for Bitcoin through ETFs. As long as the current bullish cycle remains intact, this correction could provide a medium- to long-term buying opportunity, while the $69K area, where the average cost basis of short-term investors is located, is likely to serve as a key support level.