Foreign media reports indicate that while Bitcoin's recent pullback was accompanied by a large influx of funds into exchanges, this situation is changing. The latest on-chain and derivatives data shows that selling pressure on exchanges has eased somewhat compared to the previous period; however, whether spot buying can keep pace remains crucial for a sustained price recovery.
Exchange net flow turns negative
The report noted that as of press time, the net flow of Bitcoin to exchanges had returned to negative territory, at -303.67 BTC, with a cumulative net flow of -1232 BTC over the past 7 days. This change typically indicates that less Bitcoin is flowing into exchanges to be sold, and short-term selling pressure is beginning to cool down.
Previously, the decline in Bitcoin prices coincided with large inflows into exchanges. The current drop in net inflows indicates that the willingness to sell in the market has weakened compared to the previous period.
Derivative leverage has cooled significantly.
Data from the derivatives market also showed improvement. Funding rates fell sharply from 0.003985 to 0.000337, indicating a significant reduction in long positions. Meanwhile, open interest rose only slightly to approximately $21.24 billion, suggesting that new leverage was not substantial.
- Funding rates have been reduced to 0.000337.
- Open interest was approximately $21.24 billion.
- The cumulative net outflow over 7 days was -1232 BTC.
This data reflects that market sentiment is more stable after a round of deleveraging. A rapid rise in open interest coupled with high funding rates often indicates increased speculative activity; however, the current situation is closer to a consolidation phase following position rebalancing.
Stablecoin liquidity remains in the market.
The article also mentions that the stablecoin supply ratio is 10.46, significantly lower than some previous phases of this cycle. According to the article, this means that stablecoin liquidity remains in the market, while selling pressure on exchanges is decreasing, leaving room for subsequent buying pressure.
However, the existence of liquidity does not equate to a strengthening of demand. Without a clear increase in buying in the spot market, a decrease in selling pressure alone is usually insufficient to trigger a trend reversal.
The IFP index is close to its long-term average.
The report also focused on the Inter-Exchange Funds Pulse (IFP) indicator. This indicator remained below its 90-day moving average for most of 2025 and early 2026, a period when the price of Bitcoin also fell from above $120,000 to around $60,000, indicating a generally weak market.
In recent weeks, IFP has begun to stabilize and is gradually approaching its long-term average. The article argues that historically, similar upward crossovers have often corresponded to stronger accumulation phases and better market conditions. However, this signal is still in its early stages and is not yet sufficient to confirm a full-blown strengthening trend.
In summary, declining exchange balances, cooling leverage, and improved IFP all point to easing selling pressure. Foreign media believe that Bitcoin has gradually shifted from its initial distribution phase to a stabilization phase, but for a sustained recovery, spot demand still needs to strengthen further.
