The bitcoin market is showing weakness as slowing spot and futures demand coincides with outflows from exchange-traded funds (ETFs). On Sept. 11, blockchain media outlet CoinPost reported that CryptoQuant analyst Darkfost analyzed that weakness across the broader cryptocurrency market has become clear based on key supply and demand indicators.

Spot demand was tallied at minus 145,000 BTC. This means selling demand has continued to outweigh buying demand in spot markets on exchanges. Futures demand was plus 74,500 BTC, keeping a net inflow. The pace of increase, however, slowed. Darkfost saw futures demand growth also deteriorating noticeably, weakening buying across the market.

The Coinbase Premium Index, which indicates institutional investor flows, recorded minus 0.036. The indicator, which shows whether Coinbase's bitcoin price is higher or lower than other exchanges, also tilted in a negative direction. Darkfost analyzed that the current macroeconomic environment is not giving institutional investors confidence to actively buy risk assets such as bitcoin.

ETF fund flows also worsened. By CoinGlass figures, outflows were $282 million from bitcoin ETFs, $29.9 million from Ethereum ETFs, and $500,000 from Solana ETFs. Inflows of $5 million went to XRP ETFs, while Hyperliquid ETFs had no fund inflows or outflows. Total net outflows were $308 million, the largest single-day outflow in the past two months.

Darkfost viewed the outflows negatively given that ETFs account for a large share of spot demand. Taken together, multiple indicators suggest conditions across the cryptocurrency market are worsening, and a correction phase should be assumed unless this trend reverses early.

Macroeconomic and geopolitical issues were cited as variables ahead. Darkfost said news is the key material moving the market now and that the trend should be watched. Darkfost also offered the view that a White House announcement aimed at calming the situation could emerge given the sharp rise in U.S. Treasury yields.