The Bitcoin ETF that was once highly anticipated has now become a catalyst for price decline? Its dominance has fallen to 55%

Capital Tide Recedes, ETF Effect Reverses

Once, continuous inflows of ETF funds were the main driver pushing Bitcoin to record highs, but times have changed. Greg Cipolaro, Head of Research at NYDIG, recently pointed out that the liquidation event in early October became a turning point—large amounts of capital started flowing out, and spot Bitcoin ETFs shifted from being a success story to a market drag.

According to the latest data, Bitcoin’s current price is $87.50K, but its market dominance has fallen back to 55.36%, down from 58%. This reflects deeper changes in the capital landscape.

Market Liquidity Is Drying Up

The plunge in DER (Derivative Token) premiums and the decline in stablecoin supply are signals of capital withdrawal. Cipolaro emphasized that DER and stablecoins, which were once major sources of Bitcoin demand, are now experiencing severe premium compression, with investors accelerating liquidity withdrawal. The market correction has deepened accordingly, and the entire crypto ecosystem can feel this chill.

Long-term Optimism, Recent Caution

Despite short-term pressure, Cipolaro remains confident in Bitcoin’s long-term prospects. He believes institutional interest continues to be strong, sovereign-level interest is heating up, and Bitcoin’s asset status has been solidified—these are the fundamentals supporting a long-term upward trend.

However, he also issued a warning: cyclical narratives are emerging, and investors must prepare for the worst. The upcoming period may be challenging; the DER sector might still have some buffer, but complacency is not an option.