Bitcoin faces price resistance despite significant institutional capital inflows

Despite nearly $2.85 billion in inflows into traded vehicles, Bitcoin has faced price stagnation, trading below the $87,000 resistance level. Analysis suggests a structural rotation of assets is occurring, where long-term holders are using institutional capital inflows as exit liquidity to realize profits after periods of dormancy.

On-chain data indicates increased selling pressure from older wallets, with transfers directed toward centralized exchanges for liquidation. This selling volume appears to be absorbing the demand generated by Wall Street trading desks. Additionally, derivatives data from the CME shows a reduction in short-term leveraged risk appetite among traders.