BTC Market Pulse: Week 5
Overview
Spot conditions have deteriorated, with Spot CVD flipping sharply negative and confirming a clear shift toward sell-side dominance. Netflows have also reversed into a sizeable outflow, signalling weaker institutional support and adding near-term overhead pressure.
Derivatives positioning is mixed. Futures open interest has eased, suggesting a modest reduction in leverage, however long-side funding has surged, indicating renewed demand for bullish exposure. Perpetual CVD has collapsed into the lower band, reinforcing an increasingly defensive posture in leverage markets.
Options markets remain cautious. Open interest has drifted slightly lower, while the volatility spread remains elevated relative to realised levels, despite compressing over the week. At the same time, 25-delta skew has risen sharply, signalling increased demand for downside protection.
On-chain activity remains weak. Active addresses sit below the lower band, transfer volume is hovering near range lows, and fees have compressed, reflecting reduced block space demand. Profitability has also deteriorated, with supply in profit falling and realised losses rising, suggesting stress conditions are building as market participants de-risk.
Overall, market conditions have shifted more defensive across spot, derivatives, and on-chain indicators. While leverage is beginning to cool, persistent sell-side pressure and rising hedging demand suggest the market remains fragile, with stabilisation dependent on demand returning and sell pressure fading.
Off-Chain Indicators
On-Chain Indicators
Don't miss it!
Smart market intelligence, straight to your inbox.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
A Record 27 Trillion Yen Intervention Fails as Yen Once Again Approaches 160: The Tug-of-War Dilemma for the World's Most Difficult Currency to Trade
In recent months, the exchange rate has remained tightly anchored within a narrow range around 1 USD to 158 JPY. However, on Wednesday, it broke through again: unexpectedly for traders, the yen weakened and approached the 160 mark.
Overnight US Stocks | The Three Major Indices Closed Lower, Nvidia (NVDA.US) Closed Down 4.3%
At the close, the Dow Jones Industrial Average fell by 189.40 points, or 0.36%, to 52,297.09 points. The S&P 500 Index declined by 26.98 points, or 0.35%, to 7,592.40 points. The Nasdaq Composite Index dropped 100.10 points, or 0.39%, to 25,366.09 points.
Tim Draper predicts Bitcoin will integrate altcoin innovations, boost market dominance
Inflation Exceeds Expectations, Igniting Fed Rate Hike Forecasts! Hedge Funds Restart Short Selling, Interest Rate-Sensitive Stocks Targeted Again
As US inflation data exceeds market expectations, concerns among investors about interest rates remaining high for an extended period have resurfaced.
Crypto prices
More
