Glassnode: Active Addresses Decline, ETF Flows Improve, Bitcoin Enters Holding Pattern

May 26. Over the past week, Bitcoin’s price slid from roughly $79,000 to a local low around $74,000 before bouncing back to near $77,000. Its price momentum dropped 21.7%, signaling a sluggish trend and building selling pressure. Meanwhile, spot crypto volume delta (CVD) and perpetual CVD rose 77.2% and 35.5% respectively, suggesting selling pressure is easing and the market is moving toward balance. Market activity has also cooled off: spot trading volume fell 10%, while futures open interest dipped 3.5%, pointing to fading speculative interest and a more wary market tone. That said, hints of fresh risk appetite are starting to surface. The long-position funding rate surged 135.4%, underscoring robust demand for bullish bets and a shift toward more optimistic sentiment. In the options space, the 25-delta skew edged up, meaning a small rise in demand for downside protection, while open interest stayed steady—showing positions are still holding. Turning to traditional markets: the MVRV ratio for U.S. spot Bitcoin ETFs climbed 0.69%, marking a slight expansion in unrealized gains for ETF holders. Net flows into these ETFs also improved by 28.9%, easing outflows and stabilizing sentiment. That said, ETF trading volume dropped 22.9%, signaling a slowdown in speculative trading. On the on-chain activity front, daily active addresses and entity-adjusted transfer volume both dipped slightly, pointing to either a consolidation phase or a pullback in investor engagement. Liquidity metrics show more stable conditions, reflecting higher market confidence and less speculative activity. But profit metrics add a cautionary layer: the net unrealized profit/loss ratio has dropped sharply, while the realized profit/loss ratio shows losses being taken outpacing realized gains—indicating cautious, even potentially bearish sentiment. Overall, the market is in a state of moderation and consolidation: activity is down, sentiment is wary, though there’s still some residual risk appetite. This complex landscape underscores the need to closely monitor market dynamics and investor behavior moving forward.