Galaxy Research analyzes why Bitcoin weakened in October: weak corporate treasury buying combined with ETF outflows as the main reasons.

October 19 - Alex Thorn, Head of Research at Galaxy Research, pointed out that Bitcoin's weakness in October is related to weak corporate Bitcoin treasury accumulation and net outflows from spot ETFs. He used the "institutional absorption relative to long-term holder distribution" metric for analysis, calculated as spot ETF net inflows plus net corporate treasury accumulation, minus the reactivation volume of Bitcoin that had been dormant on-chain for over five years. The chart shows that as of October 18, the cumulative net value of this metric for the year is approximately negative 127,300 BTC, with the scale of old coin distribution from long-term holding addresses overall exceeding institutional absorption.

The analyst also stated that U.S. spot Bitcoin ETF cumulative net inflows for the year remain barely positive after returning to positive territory in September, currently at approximately positive $355 million, with small net outflows so far in October.