Weakening Demand Signals Uncertain Future for Bitcoin, Says Glassnode

Bitcoin’s market dynamics indicate a potential phase of stagnation or further decline as buying momentum continues to weaken, according to insights from the analytics platform Glassnode.

The firm highlighted that Bitcoin’s short-term demand is losing steam. One key indicator, referred to as “Hot Capital,” which tracks recently active capital within the past seven days, has seen a dramatic drop of 66.7%, falling from its December 12 high of $96.2 billion to just $32 billion.

Additionally, Glassnode pointed to a slowdown in exchange volume momentum and persistently low funding rates as further evidence of reduced market activity. The 30-day average exchange volume is now approaching the 365-day average, signaling a significant decline in capital inflows since Bitcoin’s December market peak.

Funding rates, a measure of trader sentiment in perpetual futures markets, remain below the neutral threshold of 0.01%. This reflects a lack of enthusiasm from speculative buyers, even after Bitcoin briefly rallied to $102,000. Without a new market driver, the subdued demand suggests Bitcoin could either consolidate in a narrow range or face additional downside pressure.

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Currently priced at $92,579, Bitcoin has declined nearly 3% over the past 24 hours and over 4% in the last week. The cryptocurrency is still trading more than 14% below its December all-time high of $108,135.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.