- Bitcoin fell to \$110K after a brief surge, with spot momentum softening and trading volumes remaining steady yet lacking strong upward pressure.
- Futures open interest contracted while funding rates briefly spiked, and options markets showed growing demand for downside protection among market participants.
- US-listed Bitcoin ETFs experienced \$1B outflows, and on-chain activity slowed, with daily active addresses and transaction fees declining amid reallocations.
Bitcoin fell to 110K last week shortly after rising to 117K as the market expressed exerted caution. Spot and derivatives trading slowed, and outflows on ETFs and on-chain data called attention to a weaker demand. Traders and institutions are recalibrating their positions.
Spot Market Shows Waning Momentum
Bitcoin’s spot market momentum weakened following the weekend rally. The RSI approached oversold conditions, reflecting cautious buying sentiment. Trading volumes remained steady but lacked strong upward pressure.
Cumulative selling pressure deepened, indicating that buyers are hesitant to commit further. The temporary price surge failed to sustain momentum, leaving market participants cautious.
Glassnode highlighted that Bitcoin’s rapid retreat after $117K demonstrates fragile buyer conviction. On-chain activity, including transaction fees and active addresses, also declined, showing softer network engagement.
Futures Market Cools as Speculative Appetite Declines
Futures open interest contracted last week, signaling reduced leverage across the market. Funding rates spiked briefly as long positions sought advantage, but overall speculative activity softened.
Positioning has taken slight improvement taking some pressure out of the sell side but traders are being cautious in exposure. The market is moving out of aggressive speculation to moderated risk managemen
Options data reflected growing caution. Open interest increased slightly, while volatility spreads narrowed. The 25-delta skew rose, indicating a stronger demand for downside protection. Glassnode noted this pattern as evidence of the market stepping away from euphoria.
ETF Outflows and On-Chain Activity Reflect Weak Demand
US-listed Bitcoin spot ETFs recorded $1.0B in outflows, reversing prior inflows. Trade volumes moderated, and ETF MVRV ratios declined, indicating profit-taking and lower institutional participation.
On-chain activity also softened. Daily active addresses and transaction fees fell, while transfer volumes spiked due to volatility-driven reallocations. Organic network demand appears subdued.
Capital flow metrics show cooling momentum. Realized Cap inflows slowed, Hot Capital Share plateaued, and STH/LTH supply ratios increased slightly. Profitability metrics, including NUPL and realized P/L, declined, pointing to fading gains and weaker conviction.
Bitcoin’s drop to $110K comes amid declining futures leverage, ETF outflows, and softer on-chain activity. Spot and derivatives markets suggest fragile momentum, while institutional flows and network usage remain subdued.
