Bitcoin price dips after 23% weekly gain as ETF inflows top $3 billion in August

Bitcoin price pauses after sharp weekly rally

Bitcoin’s price dropped slightly to around $79,000 on Wednesday after rising 23% in the past seven days. The pullback came as traders took profits following the rapid gain. The broader CoinDesk 20 index, which tracks major cryptocurrencies, fell 2.1% in the last 24 hours.

Despite the price dip, demand for U.S.-listed spot bitcoin exchange-traded funds (ETFs)—investment funds that track bitcoin’s price—remained strong. These ETFs saw $314 million in net inflows on Tuesday, marking the seventh straight day of positive inflows. For August, total inflows surpassed $3 billion.

Key figures from the market

• Bitcoin’s price fell 1.2% in the last 24 hours, holding near $79,000.
• U.S. spot bitcoin ETFs recorded $314 million in net inflows on Tuesday.
• August inflows for these ETFs exceeded $3 billion.
• The CoinDesk 20 index dropped 2.1% in the same period.

Derivatives market shows mixed signals

Data from bitcoin derivatives—financial contracts based on bitcoin’s future price—suggested growing short-term caution. The taker long-short volume ratio, which measures the balance between buyers and sellers, turned bearish, with 51.64% of the 24-hour trading flow coming from short positions.

However, bitcoin’s futures open interest (the total number of outstanding contracts) continued to decline, falling below 700,000 BTC. This combination of lower prices and shrinking open interest is seen as a positive sign, indicating traders are closing positions rather than aggressively betting against the price.

Meanwhile, traders showed interest in bitcoin call options—contracts that give the right to buy bitcoin at a set price in the future—with strike prices ranging from $82,000 to $100,000. This suggests some investors expect the price to rise further.

Other cryptocurrencies see mixed performance

Pyth Network’s token (PYTH) rose 11% ahead of a planned infrastructure upgrade that promises faster price updates and lower delays. LayerZero’s token (ZRO) also gained after announcing a new trading engine that will use 75% of its revenue to buy and burn ZRO tokens, reducing the total supply.

Privacy-focused cryptocurrency Zcash (ZEC) fell 7.3% after Grayscale’s spot ZEC ETF began trading, reversing some of its 56% gain from the previous week. Other tokens like INJ, ENA, and VIRTUAL also declined between 5% and 7%.

What is confirmed

• Bitcoin’s price fell to around $79,000 after a 23% gain in seven days.
• U.S. spot bitcoin ETFs saw $314 million in net inflows on Tuesday, bringing August inflows above $3 billion.
• The CoinDesk 20 index dropped 2.1% in the last 24 hours.
• Futures open interest for bitcoin declined below 700,000 BTC.

What remains uncertain

The sources do not confirm whether the current price dip will continue or if bitcoin will resume its upward trend. While derivatives data shows short-term caution, it also indicates expectations of future price increases.

Why this matters for crypto investors

The steady inflows into bitcoin ETFs suggest continued interest from institutional investors, even as the price takes a breather. The mixed signals from derivatives markets indicate that traders are cautious but not necessarily bearish, which could mean a period of consolidation before the next move.

Sources

• CoinDesk