Matrixport: Bitcoin lacks new narratives, and weak ETF funding may lead to continued consolidation

Matrixport released the latest analysis indicating that the core reason for Bitcoin's recent consolidation is the "lack of narrative." Data shows that Bitcoin spot ETFs have recorded net outflows for three consecutive months. Despite several U.S. wealth management firms gradually opening allocation channels, the new channels have not brought in corresponding incremental funds, and the overall ETF funding situation remains weak.

Matrixport believes that the marginal demand from traditional finance (TradFi) may have reached a phase of saturation. In terms of timing, July was the last significant net inflow window, after which the momentum of funds has continued to weaken. The report suggests that Bitcoin may need a "narrative reboot" or a new core pricing theme to form substantial support in terms of funds and expectations, and to re-attract TradFi capital back; the current trend is more likely a phase of correction rather than a long-term trend reversal.