Bitcoin rally loses momentum as spot volume, ETF inflows remain weak

Bitcoin (BTC) declined below $85,000 as low trading volume and lack of fresh capital inflows weakened its momentum.

Bitcoin spot volume weakens amid lack of fresh capital

In a Wednesday report, Glassnode noted that combined Bitcoin spot exchange and US spot exchange-traded fund (ETF) volume averages $6.8 billion a day on a seven-day basis. That level is lower than 90% of every trading day since January 2024, highlighting the lack of strong participation behind the recent price move.

Glassnode noted that Bitcoin’s earlier move above $85,000 did not trigger a meaningful increase in spot activity.

“A rise in spot volume would be the first sign that buyers are coming back in size,” the firm wrote.

The report also pointed to a gap between new capital entering the market and the increase in Bitcoin’s realized value. During the 30 days through October 5, US spot ETF flows, stablecoin growth and corporate treasury purchases contributed roughly $4.9 billion in new money. Over the same period, Bitcoin’s Realized Cap increased by about $12.8 billion.

Glassnode analysts warned that a rally remains dependent on existing market participants paying progressively higher prices unless fresh inflows accelerate.

With new money failing to flow in, profit-taking among recent buyers has become another source of pressure. On Sunday, the first day Bitcoin closed above the $85,000 level, roughly 86% of BTC sent to exchanges by short-term holders (STH) were moved at a profit.

Glassnode reported that this was the highest share recorded on any day over the past year, compared with less than 40% on a typical day.

“The sellers who met the breakout were the buyers of the past few months. If they keep sending coins to exchanges at this pace, the next push toward $85K would meet the same supply,” the firm stated.

Options traders turn bullish amid spot weakness

Despite the weakness in spot activity, Bitcoin’s options market has become increasingly bullish. Put/call ratios for both open interest and trading volume are below one and sit in the lower third of their 2026 ranges. Open interest currently shows approximately 0.56 puts for every call.

Traders are also spending more on upside exposure. Over the past 30 days, daily spending on calls has exceeded puts by roughly $17 million on average. The activity reflects growing optimism, but Glassnode warned that the positioning could become excessive if Bitcoin’s price stalls.

Liquidity conditions also point to downside risks. The report identified a major liquidation cluster between $81,700 and $83,300, while another significant cluster sits around $75,000. The largest liquidation band is substantially lower at $60,000-$63,000.

“Should price trade down into these clusters, forced selling of long positions could add to the move,” Glassnode added.

Similarly, a major liquidation cluster above Bitcoin’s current price extends from roughly $87,100 to $95,900, with the heaviest concentration near $92,000. A break above the $86,500 area could trigger short liquidations and accelerate an upside move.

At the same time, sellers have established a new ask block around $86,500-$86,750. After breaking through bids around $85,000, the largest bid block is now positioned at $81,000 - $81,250.

"A settled close back above $85.5K would win back the level the market lost this week," stated Glassnode analysts.

BTC is trading at $83,390, down 2.7% in the past 24 hours, at the time of writing.