Spot markets reflect this cooling tone, with trading volume declining and activity remaining subdued. The pullback in participation suggests demand remains tentative, with investors showing limited conviction at current levels.
Derivatives positioning points to a more balanced but cautious backdrop. Futures open interest edged higher, while funding rates firmed, indicating a tilt towards long exposure. At the same time, sell-side pressure in perp markets has eased, suggesting bearish positioning is becoming less aggressive.
Options markets saw a sharp contraction in open interest, highlighting a reduction in speculative activity. With volatility spread previously negative, hedging demand appears muted, reinforcing a more complacent stance among options traders.
ETF flows reversed into net outflows, accompanied by a slight decline in trading volume. This shift suggests institutional demand has softened, with capital rotation slowing after prior inflows.
On-chain data reflects a market still under pressure but showing early signs of stabilisation. Profitability has declined, loss realisation has accelerated, and activity has weakened, yet capital outflows are easing.
In sum, the market appears to be transitioning from active distribution towards a more neutral footing. While conditions remain fragile, easing sell-side pressure and stabilising flows suggest the groundwork for a potential recovery is forming, though stronger demand is still required to confirm a sustained shift.
Off-Chain Indicators
On-Chain Indicators
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Disclaimer: This report does not provide any investment advice. All data is provided for information and educational purposes only. No investment decision shall be based on the information provided here and you are solely responsible for your own investment decisions.
Exchange balances presented are derived from Glassnode’s comprehensive database of address labels, which are amassed through both officially published exchange information and proprietary clustering algorithms. While we strive to ensure the utmost accuracy in representing exchange balances, it is important to note that these figures might not always encapsulate the entirety of an exchange’s reserves, particularly when exchanges refrain from disclosing their official addresses. We urge users to exercise caution and discretion when utilizing these metrics. Glassnode shall not be held responsible for any discrepancies or potential inaccuracies.
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