Bitcoin’s stock-to-flow ratio drops 25% – is BTC’s scarcity narrative weakening?

Bitcoin’s Stock-to-Flow ratio has fallen to 797.69, reflecting declining scarcity as retail traders dominate while whales remain inactive. This shift indicates uncertainty in Bitcoin’s long-term valuation, as traders appear more focused on short-term speculation than strategic holding.

The Open Interest in Bitcoin Futures is down by 2.5% to 35.6 million, suggesting cautious trading. With thinning liquidity and reduced volatility, market participants are generally hesitant to commit to large positions, leading to an overall state of caution in BTC trading.

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