Altcoin leverage is still running hot.

Prices have pulled back since leverage peaked earlier this month, yet over 40% of large caps still sit near their highest leverage of the year. In mid caps, that share is at a yearly high.

A deeper drop would put many longs at risk.

Short-term profit-taking has weighed on $BTC.

Two weeks ago we flagged short-term holders in profit sending the largest share of exchange inflows in a year. This selling has weighed on price since.

The flow has now eased back to its average yearly level.

ETF buyers came back in size yesterday.

US spot $BTC ETFs took in $663M, the most in a day since September, and all of it went into BlackRock's IBIT.

That single day erased the funds' net outflows for October. Follow-through would confirm the demand is back.

The Q4 levels for $BTC have held so far.

Last month, together with @colin_basco and the @CoinbaseInsto team we put resistance at $87K to $87.8K in our Charting Crypto report. We read the data as near-term consolidation.

Price stalled there and ranged below it ever since.

A break out of the range is likely to spark significant volatility, although another overhead supply cluster sits around $90k.

Read our full quarterly report below👇
https://twitter.com/glassnode/status/2110737242608246947

Binance asks and the biggest liquidation clusters sit around $87K.

The top buyers still cap $BTC price near the same levels.

A daily close above that level with ETF inflows would show buyers absorbing the supply.

More in this week's Week On Chain

$BTC is boxed in between $80K and $87K.

Below, buyers refilled the bids at the ETF and treasury cost basis. Above, the top buyers' break-even, the main asks and the largest liquidation clusters share one zone.

More on ETF flows, MSCI and altcoins in this week's Week On-chain.

BTC treasury companies are in profit but barely buying.

They hold $BTC at a cost basis of about $80K, and price has closed above it since September 18.

In profit, buying can feed on itself: purchases lift price, price lifts their shares, and their shares fund more purchases.

$BTC is testing the ETF cost basis around $81K again.

The same level capped the May rally before a deep drop, and caught last week's sweep from just below.

A convincing close below it would put mid $70K levels back into play.

Traditional finance is moving onto crypto rails.

Perpetuals on stocks, gold and oil grew into a large part of perp trading on major venues while $BTC sat in a bear market.

Our new report with Fasanara Digital examines what that means for allocators.

Speculation rotated into equities during Bitcoin's bear market.

On Hyperliquid, TradFi perps hit over 3x the $BTC perp's volume in August, just when BTC investors capitulated.

More in our report with @FasanaraDigital:
https://glassno.de/fasanara-q4