Bitfinex: Traders Tend to Sell on Rallies Rather Than Accumulate Chips

BlockBeats News, December 8th. In its latest report, Bitfinex stated that Bitcoin is entering a phase where spot demand is weak and a sustained structural malaise is intertwined, showing signs of stabilization in the market but far from a healthy recovery. Despite a rebound from recent lows, BTC is still range-bound between $84,000 and $91,000, while the S&P 500 Index nears historical highs, highlighting Bitcoin's growing relative weakness and deepening decoupling from traditional risk assets. On-chain data shows that currently over 7 million BTC are in an unrealized loss state, similar to the situation during the consolidation phase at the beginning of 2022, further indicating the market's struggle to recover to the "true market value" — a key boundary separating a soft mid-cycle from a full-blown bear market deterioration.

However, capital inflows continue to remain mildly positive, providing a weak cushion against further downside. Meanwhile, spot demand has significantly deteriorated: the U.S. Bitcoin ETF continues to see outflows, with a sharp decline in active buying interest, and the delta of cumulative trading volume on major exchanges has clearly turned negative, indicating traders are selling at highs rather than accumulating chips.