BTC price action spooks ETF investors, data shows, but there is reason to believe that Bitcoin is seeing a broadly healthy correction. on May 2, Checkmate, the lead on-chain analyst at blockchain data firm Glassnode, revealed a key change in the Bitcoin bull market.As Checkmate shows, a gradual “de-leveraging” across Bitcoin futures has been ongoing since Bitcoin’s latest all-time highs in mid-March. This, he argues, is putting an end to “bull market excess.
“Funding rates have cooled off gradually, not violently, which is very healthy to see. It suggests we didn't see a massive futures margin call yesterday,” he wrote. “Futures markets also saw two statistically significant deleveraging events prior to this sell-off,” the thread noted alongside a chart of the 7-day change in Bitcoin futures open interest levels.
A similar story was visible for all the ETF products, with negative flows across the board, per data from sources including United Kingdom-based investment firm