Key Points
- Bitcoin ETFs have attracted over $970M in three days, indicating a resurgence of institutional interest.
- Despite this, stablecoin liquidity, Stock-to-Flow and MVRV ratios, and DeFi engagement for Bitcoin have all declined.
Bitcoin’s [BTC](https://coineagle.com/price/bitcoin/) institutional interest appears to be rekindling, with ETFs recording over $970M in inflows within just three days. This marks a reversal of weeks of capital outflows.
This sudden surge in inflows is concurrent with Bitcoin’s trading price of $104,750.20, following a 2.67% daily drop. The capital influx during a price dip implies a renewed conviction among larger investors. However, the overall market sentiment remains mixed.
Stablecoin Liquidity and Bitcoin’s Scarcity
The Exchange Stablecoin Ratio is currently at 5.69 after a 3.34% drop, indicating a decrease in spot buying power. A lower stablecoin presence on exchanges often signals reduced liquidity for immediate purchases, thus weakening short-term upside potential. This decline could counterbalance the bullish pressure from the ETF inflows.
Bitcoin’s Stock-to-Flow Ratio has also fallen significantly by 22.22%, dropping to 706.78K. This metric measures scarcity by comparing circulating supply to new issuance. A sharp decline suggests an increased rate of new supply or reduced circulation stress, both of which can undermine bullish valuation models.
Profit-taking and DeFi Engagement
The MVRV Ratio, a measure of profit-taking behavior, now stands at 2.21, down 3.08% in the past day. This drop signals that many holders are still in profit but are beginning to offload. If selling pressure increases, BTC could struggle to maintain its recent ETF-fueled momentum.
Bitcoin’s Total Value Locked (TVL) in DeFi has decreased 3.66% in 24 hours, now at $6.354B. This drop reflects reduced engagement in BTC-backed decentralized finance protocols. It may signal a broader risk-off sentiment or investor migration to alternative chains. Consequently, a weakening presence in DeFi undermines BTC’s role as a capital-efficient asset in on-chain ecosystems.
Despite promising ETF inflows, falling DeFi TVL underscores a less enthusiastic posture in real economic utility within the crypto space. With stablecoin buying power, valuation ratios, and DeFi activity all trending down, the market appears conflicted. For BTC to sustain a new leg up, these on-chain and ecosystem metrics must begin supporting the narrative of renewed bullish strength.
