Bitcoin Under Pressure as On-Chain Activity Signals Weak Adoption
Bitcoin (BTC $109,706) rebounded from early Asian-session lows near $108,760 to surpass $110,000, yet analysts warn that a sustained recovery remains uncertain. On-chain metrics indicate weakening network activity, suggesting limited support beneath the surface.
“RSI is nearing oversold and MACD remains bearish,” said Timothy Misir, head of research at BRN. “Spot CVD at –$199 million points to seller dominance, while Daily Active Addresses dropped to 692K, reflecting declining engagement.”
The broader crypto market mirrors this weakness. The CoinDesk 20 and CoinDesk 80 indices fell 2% and 1.7% respectively over 24 hours.
Derivatives and Liquidations
Leverage-driven traders were heavily impacted, with $940 million in futures liquidated in the past 24 hours, including $800 million in long positions. Ether accounted for $320 million of these liquidations. BTC open interest remains high above 740K BTC, while ETH OI has slightly decreased to 14 million from 14.6 million. Other major tokens, including SOL, XRP, DOGE, ADA, and LINK, saw OI declines, signaling net capital outflows.
Funding rates remain positive for most major tokens, except SHIB, ADA, and SOL, indicating long positions still dominate. CME BTC futures OI declined to 137.3K from 145.2K, reflecting low institutional participation, whereas options OI continues to rise. Deribit’s upcoming multibillion-dollar expiry is skewed toward BTC puts, highlighting bearish sentiment, while ETH expiry shows a more neutral profile. OTC flows at Paradigm have been mixed, featuring BTC put buying alongside ETH calls and risk reversals.
NFT Market Weakness
NFT blue-chip collections declined sharply as ETH retreated from record highs, erasing over 10% of value for many top projects:
- Pudgy Penguins: down 17% to 10.32 ETH
- BAYC: down 14.7% to 9.59 ETH
- Doodles: down 18.9% to 0.73 ETH
- Moonbirds: down 10.5%
- Lil Pudgys: down 14.6%
- CryptoPunks: down 1.35%, demonstrating defensive resilience
Trading activity remained strong despite floor declines. Pudgy Penguins led with 2,112 ETH ($9.36M), followed by Moonbirds (1,979 ETH), CryptoPunks (1,879 ETH), and BAYC (809 ETH). Overall NFT market capitalization fell nearly 5% to $7.7 billion from $9.3 billion on Aug. 13, highlighting how quickly capital leaves weaker collections. CryptoPunks’ relative stability underscores its value as a defensive, collateral-grade asset, while newer projects remain high-beta ETH proxies.
