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Bitcoin (BTC) has been pushed down to the $65,000 support level amid a lack of demand in the spot market, sharply dampening investor sentiment and raising red flags over the possibility of further declines.
According to Bitcoinist on February 13 (local time), on-chain data analytics firm Glassnode reported that Bitcoin’s recent price drop is not simply the result of strong selling pressure but stems from a sharp disappearance of spot demand that had been supporting the market. In its report, Glassnode noted that buy volumes on spot exchanges have fallen to record lows, indicating that the driving force needed for a price rebound has effectively vanished. In particular, as investors shift to a wait-and-see approach rather than buying the dip during price declines, concerns over worsening market liquidity are deepening.
Glassnode’s on-chain indicators show that the balance between realized profits and losses has broken down, with sellers fully taking control of the market. As Bitcoin’s price threatens the $65,000 level, realized losses have surged, signaling an acceleration of panic selling among short-term holders. The lack of demand in the spot market is further fueling volatility in the futures market, creating an unstable structure in which even small-scale sell orders trigger sharp price reactions.
Market analysts warn that if the current demand vacuum persists, Bitcoin could retreat further toward the psychologically significant low-$60,000 range. Glassnode explained that during previous bull markets, strong spot buying consistently supported prices during pullbacks, but both institutional and retail investors are now reluctant to enter the market aggressively. The decline in spot trading volume suggests that overall market energy has been depleted, meaning that a meaningful recovery will require not just a technical rebound but a substantial inflow of genuine spot buying.
In addition, the pace of capital inflows into spot Bitcoin ETFs has slowed noticeably, adding to market disappointment. Some analysts suggest that the institutional demand that led the market’s initial rally following the launch of the ETFs may have reached its limits, leaving investors waiting for new positive catalysts. Experts agree that improvements in macroeconomic conditions or a breakthrough within the Bitcoin ecosystem will be necessary to break out of the current slump.
The Bitcoin market now stands at a dangerous inflection point marked by an extreme imbalance between supply and demand, with downside pressure likely to persist for the time being. Unless indicators of spot market activity show improvement, a sustained trend reversal in price will be difficult to expect.
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