Week On-Chain, Week 31, 2025

Bitcoin has slipped below $116k, entering a low‑liquidity “air gap”, a zone where few coins have changed hands. Short-Term Holder profitability has hit the bull market mid-line, ETF flows have turned negative, and funding rates are cooling off as the market is trying to find support.

Executive Summary:

- After peaking above $123k in mid‑July, BTC has since entered a phase of indecision, with the price trading below the supply cluster with a base at $116k.

- On July 31, price broke below the lower boundary of this cluster, slipping into a relatively low‑liquidity “air gap”, which persists down to $110k. Opportunistic buying has emerged, but the market is yet to reclaim key resistance levels.

- Short‑term holder profitability has dropped, although around 70% of their supply is still held in profit. Without a quick rebound in demand, confidence amongst these new investors may start to weaken, prompting further sell pressure.

Read the full report here.