Bitcoin Market Shows First Signs of Stabilization as ETF Outflows Ease

U.S. bitcoin ETF flows have finally shown early stabilization, recording a modest $56.5 million inflow on December 9 after weeks of heavy selling that drained more than $1.1 billion in November, according to SoSoValue. While this shift hints at improving sentiment, Glassnode analysts caution that the recovery remains shallow. Momentum is picking up, yet spot CVD — a measure of cumulative buy and sell pressure — is still deeply negative, reflecting soft underlying demand. Derivatives markets also point to caution, with traders maintaining defensive positioning and overall on-chain activity drifting near the lower end of its recent range.

Short-term holders continue to dominate the circulating supply, keeping bitcoin highly sensitive to volatility. Although BTC’s 14-day RSI has returned to a neutral midrange after last week’s extreme readings, analysts note that the broader structure of the market still appears fragile. Futures open interest has slipped, volatility premiums remain discounted, and options desk activity confirms that traders are paying more for downside protection than upside exposure.

On-chain signals offer little validation of a stronger trend. Active address counts sit near cycle lows, and realized cap growth of just 0.7% highlights the lack of substantial new capital entering the network. Glassnode emphasizes that BTC’s recent bounce appears driven more by reduced selling pressure than genuine buy-side strength. Analysts argue that the market is unlikely to establish a clear directional trend until ETF inflows turn consistently positive and both long-term holders and institutional allocators show renewed conviction — neither of which is evident yet.

Bitcoin is currently trading around $92,214 after a sharp U.S. session reversal fueled by spot buying and signs of seller fatigue. Ether has climbed to roughly $3,296 following a 6% surge as improving sentiment and short covering support large-cap altcoins. Gold remains above $4,200 on expectations of a U.S. rate cut, while Japan’s Nikkei 225 gained 0.82% ahead of key economic data. In other crypto news, a judge is pressing Do Kwon for clarity ahead of sentencing, and Securitize has hired a former PayPal executive as it prepares to go public via SPAC.