CryptoQuant’s CEO Ki Young Ju posted on social media platform X today, August 13, 2026 and stated that Bitcoin (BTC) early holders have witnessed their most profitable trading loop yet. There has been a structural shift in the market, changing who absorbs the selling pressure. This time, crypto exchange traders were not the main buyers of the selling pressure as ETFs and digital asset treasury companies (DATs) absorbed more of the supply.
ETFs and DATs Become Major Source of Bitcoin
As per Ki Young Ju, the on-chain leverage data is a sign of changing trader behaviour. A metric tracking Bitcoin futures open interest against USDT reserves showed easing from above 0.5 to around 0.3. It is on a high compared to pre-ETF levels and he noted continued ETF inflows could push it high. Separately, taker buy-sell data showed a high in market-order long positions near the bottom. It repeats patterns witnessed when whales built large positions near $16,000 in 2023. Similar spikes recently appeared on exchanges like OKX. He advised this should not be read as a sign but rather a useful gauge of trader sentiment.
The comment comes as spot Bitcoin ETFs continue to appeal significant capital, although recent flows have shown some cooling. From 1-12th of August, Bitcoin ETF products have seen an inflow of $652.59 million, as per SoSoValue data.
Cumulative Bitcoin ETF inflows since rollout have surged to $52 billion, while assets under management have approached $79 billion. On-chain data also showed BlackRock clients purchasing more BTC than other market participants sold, indicating institutional demand remains despite weaker short-term flows.
The growth of ETFs and DATs marks a noticeable difference from prior BTC cycles, when long-term holders were reliant on conventional crypto markets to absorb their selling. The new emergence of these institutional buyers has created a major source for BTC as early holders take profits. Ki Young Ju’s comments metrics therefore indicate a broader change in Bitcoin’s liquidity structure, as record profits seen among early holders are happening alongside a market where institutional investment vehicles have become crucial in absorbing available supply.
Bitcoin Spot Volume Falls as Glassnode Warns of Downside Risk
Moreover, according to Glassnode data, Bitcoin spot exchange volume plunged to its lowest level since the on-chain analytics platform’s series began in 2019. Bitcoin is currently caught between the $63,000 median realized price and the $68,700 short-term holder cost basis.
Glassnode indicators show exhaustion approaching levels previously observed around bear market bottoms. However, spot demand remains slow with only modest ETF inflows and continued net BTC flows on-chain. Glassnode also advised that thin bids and crowded leverage could bolster losses if BTC falls below the June low near $58,500.
At the time of writing, the BTC token is trading at $63,585.45 with a dip of 0.8% in the last 24-hours as per CoinGecko.
The combination of weak spot volume and less demand leaves BTC vulnerable to further selling pressure surges. The difference between record profits for early BTC holders and weaker spot market demand reflects the changing mechanism of the current loop. ETFs and DATs have provided a new source of structural demand that was less prominent during earlier Bitcoin cycles. It allows long-term holders to realize profits without depending heavily on conventional crypto exchange traders as exit liquidity.
Similarly, recent ETF flows suggest institutional demand has not disappeared even as the Bitcoin spot market shows weakened signs. The market therefore remains caught between heavy structural demand from newer investment cycles and weaker near-term spot activity, with the $58,500 level emerging as a crucial downside area if selling pushes.
