U.S. spot Bitcoin ETFs recorded just $67 million in net inflows over two weeks, with most of the $653 million that entered the funds on October 19 subsequently reversing, according to on-chain analytics firm Glassnode.

Bitcoin remains below $85,000 as weak ETF demand and declining volatility limit market activity following the Federal Reserve's October 28 decision. Glassnode noted that repeated failures to reclaim the $85,000 level have coincided with reduced selling losses and weakening altcoin breadth, while Bitcoin's volatility has returned to levels last seen in the summer of 2023 and spot ETF flows stay subdued.

ETF Demand Weakens as Bitcoin Faces $85,000 Resistance

Glassnode reported that the bulk of the $653 million that entered U.S. spot Bitcoin ETFs on October 19 later flowed out. Over the two weeks that followed, the funds took in only $67 million in net inflows, while daily ETF trading volume has averaged approximately $1.3 billion since May.

On October 23, ETF trading volume dropped to roughly $700 million. Bitcoin also slipped below the spot ETF cost basis of $81,500, leaving the average fund investor underwater. The cost basis marks the average price at which coins held by the funds were acquired, which is why it is widely used as a reference point for whether aggregate fund investors are in profit or loss.

The $84,000–$85,000 range has rejected Bitcoin four times this year. Glassnode noted that the asset has closed above $85,000 on only five days since January, never sustaining the level for more than three consecutive sessions.

Bitcoin Volatility Returns to Summer 2023 Levels

Glassnode placed Bitcoin's one-month realized volatility near 25%, matching levels recorded during summer 2023. Since 2015, Bitcoin has experienced lower volatility on only about 5% of days. Realized volatility measures the size of price swings actually observed over the trailing month, so a reading this low describes unusually compressed trading ranges by Bitcoin's historical standards.

Realized losses have also narrowed with each market dip since August. Daily net losses reached approximately $630 million during the August low, compared with roughly $27 million around October 24.

Order-book data shows that bids on Binance have shifted toward the $78,000–$79,000 range, where orders total approximately $42 million, up from $24 million in mid-October. Together with the $81,500 cost basis and the repeatedly rejected $84,000–$85,000 band, that bid cluster gives market observers concrete levels to track while ETF flows remain subdued.

Altcoin Breadth Declines as Hyperliquid Volumes Outpace Bitcoin

According to Glassnode, 66% of the top 100 altcoins traded above their 200-day moving averages, down from 88% on October 4. Across the top 500, the share fell to 42%. The 200-day moving average is a long-standing trend benchmark, so a broad decline beneath it signals that fewer tokens across the altcoin market are holding above long-term trend levels.

Meanwhile, Hyperliquid's stock, index and commodity perpetual markets averaged $2.6 billion in daily volume over the past week, surpassing Bitcoin perpetuals, which averaged $2.4 billion.

Glassnode also noted that wallets holding 100–1,000 BTC continued accumulating throughout October. Several other wallet groups reduced their exposure, however, while larger holders slowed their pace of purchases.

Source: Cryptofrontnews