Bitcoin Spot Demand Rises Amid Bearish Derivatives

Bitcoin's market is showing early signs of stabilization and potential upside momentum as exchange reserves hit multi-month lows and spot demand surges through institutional inflows, even as derivatives traders maintain a deeply bearish stance.

Recent data indicates that Bitcoin reserves on major exchanges have fallen to 2.683 million BTC, one of the lowest levels in recent months and down from nearly 3 million in late April and May 2025. This decline suggests reduced selling pressure, as fewer coins are available for immediate liquidation. At the same time, the Bull Score Index, a measure of market recovery potential, has climbed to nearly 40, its highest reading since October 2025 and a marked improvement from earlier lows this year. Analysts note that scores above 60 have historically preceded bullish rallies, such as those pushing Bitcoin toward 90,000 to 120,000 in 2024 and 2025.

Despite these positive supply signals, spot retail trading activity remains subdued, near yearly lows following a peak during Bitcoin's all-time high range. This contrasts sharply with robust spot market accumulation. U.S. spot Bitcoin exchange-traded funds recorded net inflows exceeding 816...