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Bitcoin Pulls Back as ETF Flows and Open Interest Weaken

Spot ETF flows and lower open interest are signaling softer support for the BTC rally. Ether and several altcoins are also losing momentum.

By Mike Hesp
• 2 min read
Bitcoin Pulls Back as ETF Flows and Open Interest Weaken

Key Takeaways

  • Bitcoin fell on Tuesday for the first time this month, ending its longest winning streak since March.
  • Weak spot demand, reflected in ETF flows and the Coinbase premium, weighed on Bitcoin and Ether's rebound.
  • The altcoin market remained mixed, while the Altcoin Season indicator held at 46 out of 100.

Bitcoin pulled back on Tuesday for the first time this month, snapping its longest stretch of gains since March. The price had climbed to $64,500 (€56,500) on Monday, its highest level in more than two weeks, before losing momentum. Ether also gave up part of its recent bounce.

Recovery Loses Steam

Bitcoin's latest rebound, along with gains in other tokens, mostly came after the market was already crowded with short positions at the end of June. That short squeeze helped push crypto out of oversold territory, and total market value has since risen 8.4 percent since July 1 to $2.16 trillion (€1.9 trillion).

Even so, the underlying setup is still uneven. More than $500 million (€438 million) in leveraged crypto futures positions were wiped out over the past 24 hours, with shorts once again taking the bigger hit. At the same time, Bitcoin's futures open interest slipped to 740,000 BTC from 776,000 BTC on July 3, a sign that derivatives traders have not been piling in as aggressively.

Weak Spot Demand Is Dragging

Market data also points to softer spot demand, based on ETF flows and the Coinbase premium. That matters because spot Bitcoin ETFs have become a much bigger part of market structure since they launched in early 2024. In 2026, Bitcoin has also started trading more closely with traditional markets, including the S&P 500, as institutional investors adjust exposure more often around macro headlines.

That makes the current pullback especially notable for European crypto readers. If spot demand and derivatives positioning do not improve together, rallies can fade much faster than they did in earlier cycles. Ether showed that on Tuesday as well: the token slipped back to $1,770 (€1,550) after reaching $1,830 (€1,600) on Monday. The weak ETF flow also fits the broader picture of slowing institutional demand, even as large holders continue buying.

Altcoins Remain Mixed

The broader altcoin market is still sending mixed signals. SOL open interest fell back to 68 million tokens from a peak of more than 76 million on June 24, while tokens such as FET, KASPA, and WLD lagged even as the wider market recovered. In other words, Bitcoin's move is not automatically lifting every coin with it.

CoinMarketCap's Altcoin Season indicator sits at 46 out of 100, below Friday's high but still above May levels. For the crypto market, that suggests rotation between Bitcoin, Ether, and smaller tokens is still uneven for now, with no clear broad confirmation that the recovery is holding.

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