Bitcoin’s Wild Ride: Speculators Flee Like Mice 🐭📉

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On-chain data reveals that the Bitcoin Inter-exchange Flow Pulse (IFP) has been plummeting faster than a drunk on a sled. It seems derivatives traders are losing their taste for risk, leaving the market colder than a Siberian winter. ❄️

Bitcoin IFP Takes a Nosedive

In a recent post on X, CryptoQuant analyst Maartunn delved into the downward spiral of the Bitcoin IFP. This indicator tracks Bitcoin flows between spot and derivatives exchanges, and its decline suggests traders are fleeing derivatives faster than a cat dodges a bath. 🐱💨

When the IFP rises, it signals increased speculative activity-akin to a gambler doubling down. But a falling IFP? It’s like watching a poker player fold before the flop. 🃏

Take a look at this chart shared by Maartunn, showing the IFP and its 90-day moving average over the past decade:

As the graph illustrates, the IFP enjoyed an uptrend in late 2024, only to nosedive in early 2025. The indicator’s value slipped below its 90-day MA-a classic bearish signal. Over the year, the descent has accelerated, leaving derivatives traders scrambling for the exits like rats abandoning a sinking ship. 🐀🚢

Historical patterns suggest this isn’t a minor hiccup. Two cycles ago, the IFP’s decline heralded the 2018 bear market. In 2021, it initially signaled a bull run, but the 2022 bear market soon followed. Will history repeat itself, or will risk appetite return like a prodigal son? Only time-and Bitcoin’s whims-will tell. ⏳

Meanwhile, Bitcoin treasury companies have been quietly accumulating coins, unfazed by the market’s turmoil. Glassnode co-founder Rafael highlighted this trend in an X post:

The chart shows that even as Bitcoin retreated from its all-time high above $126,000, treasury holdings continued to climb. “Not seeing much of the alleged forced selling here despite some equities trading below mNAV,” Rafael noted, perhaps hinting at resilience-or sheer stubbornness. 🐂

BTC Price Update

As of now, Bitcoin trades around $87,500, down over 7% in the last week. 📉

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2025-12-17 11:26