Analytical platforms Glassnode and Santiment have published reviews of the current state of the cryptocurrency market. Experts point to cautious consolidation with positive on-chain signals against a backdrop of restrained institutional and derivatives market activity.
Derivatives and ETFs Signal Caution
Glassnode noted that after a local high near $66,700, Bitcoin pulled back to $64,000 and then partially recovered. Despite this, the market structure remains unchanged — the price continues to move within the established range.
Analysts also drew attention to the derivatives market. Although open interest has increased somewhat, funding rates for long positions have decreased significantly, indicating traders' more cautious use of leverage.
Furthermore, regulated investment products have switched to net outflows, and weekly trading volumes have decreased. At the same time, according to Glassnode's estimates, aggregate institutional positions remain moderately profitable.
Glassnode pointed out that profitability indicators suggest sentiment stabilization. They stated that aggregate unrealized losses have decreased somewhat, and realized losses have also diminished, indicating a gradual easing of corrective selling pressure.
"Overall, the market remains in a calm transitional phase, supported by stable coin holding from investors, but restrained by cautious activity in the spot market, derivatives market, and among institutional participants," the experts summarized.
Whales Accumulate While Supply Shrinks
Meanwhile, Santiment data indicates that large market participants continue to accumulate Bitcoin. Over the past eight days, wallets holding from 10 $BTC to 10,000 $BTC have increased their reserves by 19,696 $BTC.
At the same time, the activity of the smallest retail investors is declining. Wallets with less than 0.01 $BTC are increasingly less likely to buy the price dip. Santiment believes this combination is a positive signal for the market, as coins are gradually transferring to stronger holders.
Additionally, CryptoQuant analyst Maartunn reported that 374,000 $BTC have transitioned from short-term holders to long-term holders. This means these coins are statistically less likely to be sold in the near future, which reduces Bitcoin's liquid supply on the market, he added.
Recall that earlier, Grayscale assessed the chances of Bitcoin's bear market ending.
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