Bitcoin Falls to $62,600 as Spot Demand Weakens Despite ETF Support

Bitcoin traded between $62,600 and $63,900 this week as spot demand weakened, according to on-chain data firm Glassnode. Exchange-traded fund inflows and the reluctance of long-term holders to sell in large numbers helped limit further declines.

Wallets holding between 10 and 10,000 BTC grew their holdings by 0.14% since late July, while smaller wallets holding less than 0.01 BTC reduced their positions by 0.55% over the same period. The divergence reflected large holders accumulating coins as retail investors sold during the pullback. The shift followed reports of a security flaw in Coldcard hardware wallets that resulted in losses exceeding 1,360 BTC, worth approximately $87 million.

On-chain data showed 32,000 BTC moved onto exchanges at a loss in a single day, marking the largest short-term holder capitulation in 30 days. The share of Bitcoin supply held at a profit dropped to near a cyclical low, according to Glassnode.

Analyst Daan Crypto Trades noted that Bitcoin is trading near its weekly 200-period moving average, a level it has struggled to maintain consistently. For a larger rally to develop, he said, Bitcoin would need to break decisively through the falling wedge pattern it has formed, rather than simply spike above the trend line. Liquidation data from CoinGlass showed a cluster of leveraged positions between $63,800 and $64,100, with additional liquidity sitting at higher levels around $64,300 and above.