Bitcoin recovered from the $66k lower trough, progressively advancing throughout the week with robust daily closings that propelled the price back towards $73k.
Overview
Spot market indicators are varied but favorable. Spot CVD has shifted definitively to a positive reading, indicating a resurgence of strong buying impetus, although overall spot trading volume has receded towards its lower statistical range, suggesting broader participation remains constrained.
Derivatives markets indicate increasing yet careful involvement. Futures Open Interest has seen a slight rise as Futures CVD has significantly climbed, while funding rates have moved further into negative territory, hinting at continued short-term speculation. In the options space, the volatility differential has considerably narrowed as implied volatility has adjusted to reflect actual market conditions, and the 25-delta skew has risen moderately, signaling ongoing demand for protection against downward price movements.
ETF operations have shown a marked increase, with accelerating net inflows into US spot Bitcoin ETFs, signifying a renewal of institutional interest, even as the total trading volume for ETFs has slightly decreased from previously high levels.
On-chain network activity continues to be relatively subdued. The number of active addresses has fallen below its lower threshold, and transaction volumes, while showing marginal improvement, remain moderate. Fee generation is steady, reflecting consistent but low network utilization.
Capital movement patterns and investor positioning are gradually improving. The realized cap change remains negative but is trending closer to neutrality, suggesting a reduction in capital departure. Concurrently, profitability indicators such as the supply in profit, NUPL, and the realized profit-to-loss ratio have all seen modest enhancements, pointing to a decrease in market pressure.
In summary, market conditions are exhibiting signs of stabilization and incremental recovery. Upward momentum and spot buying strength have strengthened, ETF inflows continue to provide support, and investor profitability is seeing slight gains. Nevertheless, restrained on-chain activity and cautious approaches in derivatives markets suggest that widespread confidence has not yet fully returned.
Off-Chain Indicators
On-Chain Indicators
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Original article : insights.glassnode.com