Galaxy Research Attributes Bitcoin's October Weakness to Weak Corporate Treasury Buys and ETF Outflows

[Galaxy Research analyzes why Bitcoin weakened in October: weak corporate treasury buying combined with ETF outflows as primary causes] GoldNews reports that on October 19, Alex Thorn, Research Director at Galaxy Research, noted that Bitcoin’s weakness in October was linked to sluggish growth in corporate Bitcoin reserves and net outflows from spot ETFs. Using the metric “institutional absorption relative to long-term holder distribution,” he analyzed the sum of spot ETF net inflows and corporate reserve net increases, minus the amount of Bitcoin dormant for over five years that was reactivated. The chart shows that as of October 18, the cumulative net value of this metric for the year stood at approximately -127,300 BTC, indicating that the volume of old coins distributed by long-term holders has overall exceeded institutional absorption. The analyst also noted that while U.S. spot Bitcoin ETFs returned to net inflows in September, the year-to-date net inflow remains marginal at around $355 million, with modest net outflows observed so far in October.