James Ding
Mar 24, 2025 10:07
Bitcoin stays susceptible to downward stress because of tight liquidity situations and weak investor sentiment, with ETF outflows and cautious market conduct persisting.
Bitcoin (BTC) seems to be going through ongoing downward stress as liquidity inflows stay weak, in keeping with a latest report by Glassnode. The evaluation highlights that whereas some speculative exercise persists, the broader cryptocurrency market maintains a defensive stance.
Market Overview
The report signifies that tight liquidity situations and weakening investor sentiment are key elements contributing to the present market dynamics. Regardless of some resilience in spot market exercise, with worth momentum stabilizing and perpetual contract quantity delta (CVD) turning constructive, general market participation stays subdued. Spot volumes and CVD have seen a multi-week contraction, reflecting diminished shopping for curiosity and cautious market conduct.
Trade-traded fund (ETF) markets are additionally underneath scrutiny, with sustained outflows and buying and selling volumes approaching statistical lows. This pattern suggests ongoing institutional de-risking, though the depth of outflows has slowed.
Derivatives and On-Chain Exercise
Within the derivatives market, indicators are blended. Whereas futures open curiosity has stabilized after latest declines, funding charges have dropped considerably under their statistical bands, indicating weak demand for leveraged lengthy positions. Conversely, choices market exercise is on the rise, with volatility spreads remaining low and 25 Delta Skew exceeding statistical highs, signaling elevated draw back threat hedging amongst buyers.
On-chain metrics paint a equally cautious image. Energetic addresses, switch volumes, and payment revenues proceed to say no, suggesting decrease community participation and shrinking capital inflows. Liquidity metrics echo this pattern, with realized cap development slowing and the share of scorching capital diminishing, pointing to a extra cautious investor stance.
Profitability metrics have additionally deteriorated, with the share of provide in revenue and the Internet Unrealized Revenue/Loss (NUPL) nearing ranges that might heighten investor stress and the chance of pressured promoting.
Conclusion
General, regardless of some speculative exercise, the market’s defensive posture is strengthened by ETF outflows, weakening on-chain fundamentals, and elevated demand for draw back safety in choices markets. This setting means that Bitcoin could stay susceptible to additional downward stress except there’s a important resurgence in liquidity inflows.
For the entire evaluation, please confer with the unique report on Glassnode.
Picture supply: Shutterstock
