Since the launch of spot exchange-traded funds (ETFs) in the U.S. last week, Bitcoin has been under pressure. Data from Paris-based crypto research firm Kaiko indicates that the selling pressure is concentrated on Binance, OKX, and Upbit, the largest crypto exchanges by trading volume.
Bitcoin, the largest cryptocurrency by market value, is currently trading around $42,700, a 12% drop from the $48,975 peak reached on the first trading day of spot ETFs. The decline in price is believed to be triggered by investors taking profits from long positions opened in anticipation of the ETFs’ launch.
The Cumulative Volume Delta (CVD) indicator suggests that Binance market participants led the “buy the rumor, sell the news” pullback in Bitcoin. CVD tracks the net difference between buy and sell volumes over time, showing the total net bullish/bearish pressures in the market.
According to Kaiko, Binance’s spot market CVD turned positive on January 13 and has since continued to decline, indicating an outflow equivalent to about 5,000 BTC. South Korea-based Upbit experienced the second-largest net outflow, followed by itBit and OKX exchanges.
Kaiko’s weekly report on Monday noted a significant increase in CVD across major exchanges with the launch of ETFs last Thursday, but the trend quickly reversed to negative, particularly on Binance and OKX, as fears of a sell-off began to materialize. While other institutional exchanges like itBit contributed to the selling pressure despite lower volumes, Coinbase and Bitstamp’s CVD remained positive, signaling net capital inflows amidst price weaknesses.