Glassnode: Bitcoin Liquidity Weakens, Signs of Slowing Capital Outflow Emerge

In its latest market report, Glassnode pointed out that after Bitcoin retreated from the $65,000 range last week, it experienced a slight rebound, but overall it remains in a range-bound consolidation. Spot trading volume and on-chain transaction throughput continue to shrink, reflecting low market liquidity and participation willingness. The derivatives market is cautious, with moderate leverage expansion, but perpetual contract trading leans towards the sell side, indicating aggressive distribution behavior; funding rates remain positive, suggesting some bullish sentiment, while the options market is pricing high premiums for downside protection, exceeding actual volatility levels. Institutional demand is weakening, with spot ETF trading volume declining, net capital outflows, and institutional positions nearing cost benchmarks, leading to a temporary halt in accumulation momentum. On-chain profitability is under pressure, with a significant amount of supply in a loss state, and realized losses continuing to exceed profit-taking. The report notes that the speed of capital outflow has begun to slow, which may be an early signal of stabilizing selling pressure. The overall market is caught between short-term selling pressure and long-term holdings, with weak spot liquidity, declining institutional capital flows, and high levels of loss realization all pointing to a continuation of the consolidation pattern; the slowing capital outflow suggests that the market may be approaching a state of equilibrium.

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