In pre-market trading on October 19, stocks linked with cryptocurrency in the U.S. saw notable gains, yet the weakened spot demand for Bitcoin and a loss of momentum in the derivatives market have raised doubts about the sustainability of its short-term recovery. Concurrently, the outflows from spot Bitcoin ETFs over the past two weeks have reinforced this cautious outlook.
Pre-Market Gains for Crypto-Connected Equities
Circle (CRCL) rose by 2.76% in pre-market trades. Other notable increases included Bitmine (BMNR) with a 1.99% rise, Hyperliquid Strategies (PURR) at 1.98%, and Coinbase (COIN) gaining 1.75%.
Meanwhile, Strategy (MSTR) advanced by 1.71%, Robinhood (HOOD) climbed 1.46%, and SharpLink Gaming (SBET) edged up 1.06%. This trend indicated a broadly positive performance among cryptocurrency-related stocks before the market opening.
Diminished Spot Demand for Bitcoin
Despite these stock gains, Bitcoin’s market data painted a more cautious picture. The seven-day moving average of open positions in Bitcoin fell below the 365-day moving average this month, marking the second occurrence since August 25.
Open positions refer to derivative contracts, including futures and options, that have not yet been settled. When the short-term average dips below the long-term average, it may signal a weakening of speculative demand in the derivatives market compared to previous levels.
The monetary movements in spot Bitcoin ETFs also supported a cautious recovery stance. Following a net outflow of $228.4 million the previous week, another $678.9 million exited the funds in the week ending October 9, marking two consecutive weeks of net outflows. Despite this, the total net inflow amounted to 15,400 BTC over the last 30 days.
Data from CryptoQuant, reported by XWIN Japan, indicated that Bitcoin’s spot demand had briefly approached neutral levels at the start of the month before reverting to negative. In contrast, demand for futures trading remained relatively robust.
According to AMBCrypto’s analysis, a stable recovery in Bitcoin would require strengthened inflows into spot ETFs, revitalization of spot demand, and continued accumulation by Bitcoin holders.
