Bitcoin’s recent sell-off has intensified as bearish momentum continues to build in Binance’s derivatives market. After repeatedly testing lower support levels, Bitcoin (BTC) briefly fell below $58,000 for the first time since September 2024.
This price drop was accompanied by net buyer volume of approximately -$330 million. This exceeds the -$311 million seen on June 25.
The deeper negative reading indicates that sellers are aggressively exceeding the spread rather than waiting for buyers, suppressing existing bids and accelerating the decline.
At the same time, the 7-day Open Interest trend remains positive. This suggests that investors continue to add leverage based on expectations of further declines in price.
Unless buyer interest strengthens and aggressive selling subsides, leveraged bearish positioning could keep Bitcoin under continued downward pressure.
Institutional distribution weakens Bitcoin demand
This aggressive sell-side pressure also coincided with the continued deterioration in institutional demand. Instead of absorbing the recent sell-off, US Spot Bitcoin ETFs extended the distribution trend and lost more than 100,000 BTC in 2026 alone.
Also the total number Bitcoin Those sold by ETF issuers have reached nearly 160,000 BTC since reaching a peak in reserves in late October 2025. This represents a total loss of more than $11 billion.
Therefore, a large number of corporate participants are likely to be inundated. The persistent reduction in reserves held by EFTs indicates that EFTs are moving from providing support to Bitcoin’s bull run to creating additional structural supply.
The bottom line is if ETF flows don’t turn positive again soon and institutional demand continues to weaken. This will then lead to increased negative pressure for all segments of the overall market.
Could spot demand replace weakening ETF support?
Although there has been significant Spot buying activity following weeks of ETF sell-offs, there are currently concerns. The market has not seen strong enough demand to keep the Bitcoin price above $60,000.
Since then, absorption of the oversupply has remained spotty at best, while signs of Long-Term Holders piling up have increased.
Additionally, Short-Term MVRV is still below one. This means that most new buyers during this period have unrealized losses on their positions.
Therefore, until Coinbase Premium strengthens and Spot Taker CVD turns solidly positive, weak spot demand could leave Bitcoin vulnerable to renewed downward pressure.
Final Summary
- BTC is facing increasing pressure due to aggressive selling and persistent ETF outflows.
- Bitcoin needs stronger Spot demand to stabilize and gain momentum.
