{"id":18289,"date":"2025-11-24T03:59:51","date_gmt":"2025-11-24T02:59:51","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=18289"},"modified":"2025-11-24T03:59:51","modified_gmt":"2025-11-24T02:59:51","slug":"bitcoin-demand-shifts-but-the-bigger-picture-remains-bright","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/11\/24\/bitcoin-demand-shifts-but-the-bigger-picture-remains-bright\/","title":{"rendered":"Bitcoin Demand Shifts, But the Bigger Picture Remains Bright!"},"content":{"rendered":"

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What fueled Bitcoin’s remarkable rise to its peak last October is now the reason for its drop to new lows. NYDIG points out that crypto treasury reversals and fund outflows indicate an “actual capital flight,” not just bad vibes in the market.<\/p>\n

According to Greg Cipolaro, head of research at NYDIG, he mentioned<\/a> that exchange-traded fund<\/a> (ETF) inflows and digital asset treasury (DAT) demand were crucial during Bitcoin\u2019s (BTC<\/a>) last cycle.<\/p>\n

However, a major liquidation event<\/a> in early October turned things around, causing ETF inflows to reverse<\/a>, treasury premiums to drop, and stablecoin supply to decline<\/a>. This all means money is leaving the system, showing signs that the momentum is fading.<\/p>\n

\u201cHistorically, when that flow breaks, the market usually follows a predictable pattern. Liquidity tightens, leverage tries to bounce back but struggles, and supportive narratives stop leading to actual investments.\u201d<\/p><\/blockquote>\n

\u201cWe\u2019ve witnessed this in every major cycle. The story changes, but the mechanics remain constant. The reflexive loop pushes the market higher, and its reversal sets the groundwork for the next cycle phase,\u201d Cipolaro noted.<\/p>\n

ETF Capital Outflows, But Bitcoin Stands Strong<\/h2>\n

Spot Bitcoin ETFs, highlighted by Cipolaro as the real standout of this cycle, have shifted from consistent inflows to becoming a “meaningful headwind.” Nevertheless, various factors like global liquidity changes, macroeconomic news, market stress, and user behaviors are still shaping Bitcoin’s journey.<\/p>\n

\u201cDuring market dips, Bitcoin\u2019s dominance tends to rise, as speculative assets unwind quickly and capital consolidates back into the oldest, most liquid asset available. We’ve seen this happen time and again, and it’s happening again,\u201d he shared.<\/p>\n

Bitcoin dominance surges during market downturns as investments move back to the most stable assets. Source: <\/em>NYDIG<\/em><\/a><\/figcaption><\/figure>\n

Bitcoin dominance climbed back over 60%<\/a> in early November, currently settling around 58% as of Monday, according to crypto data platform CoinMarketCap.<\/p>\n

Dips in DATs and Stablecoins<\/h2>\n

Digital Asset Treasuries (DATs) and stablecoins were key players for Bitcoin\u2019s demand. However, Cipolaro pointed out that DAT premiums, which show how shares are performing compared to net asset value (NAV), have decreased significantly across the board, and stablecoin supply has dropped for the first time in months. It looks like investors are pulling back liquidity from the market.<\/p>\n