Glassnode: Active addresses decline, ETF inflows improve, Bitcoin enters a wait-and-see phase

BlockBeats News, May 26 — Over the past week, Bitcoin's price dropped from $79,000 to a local low of around $74,000, then rebounded to approximately $77,000. Price momentum declined by 21.7%, reflecting weak price trends and increasing selling pressure. Meanwhile, spot CVD and perpetual CVD rose by 77.2% and 35.5%, respectively, indicating easing selling pressure and a market sentiment moving toward balance. Market activity also cooled down, with spot trading volume down 10% and open interest in futures contracts decreasing by 3.5%, showing reduced speculative interest and a more cautious market environment.

Despite this, signs of renewed risk appetite are beginning to emerge. Long funding rates surged by 135.4%, highlighting strong demand for long positions and improved bullish sentiment. In the options market, the 25-Delta Skew slightly increased, indicating a modest rise in demand for downside protection, while open interest remained relatively stable, suggesting positions are still intact.

In traditional financial markets, the US spot ETF's MVRV increased by 0.69%, indicating a slight expansion in unrealized gains for ETF holders. At the same time, ETF net inflows improved by 28.9%, easing outflows and stabilizing sentiment, but ETF trading volume decreased by 22.9%, indicating a slowdown in speculative activity.

In terms of on-chain activity, the number of daily active addresses and adjusted transfer volume slightly declined, hinting that the market may be entering a consolidation phase or investor activity is waning. Liquidity indicators show a more stable liquidity environment, with the market exhibiting higher confidence and lower speculative activity.

However, profitability metrics suggest increasing market pressure. The net unrealized profit and loss ratio dropped significantly, and the realized profit and loss ratio indicates more losses are being realized than gains, reflecting cautious and potentially bearish market sentiment. Overall, the market shows signs of easing and consolidation, characterized by reduced activity, cautious sentiment, and some risk appetite. This complex situation underscores the importance of closely monitoring market dynamics and investor behavior.