- Bitcoin fell below $77K as selling pressure rose, and traders reduced risky market exposure.
- Glassnode data showed weaker ETF demand and fading momentum across spot and futures markets.
- Long-term Bitcoin holders stayed firm despite rising losses and broader market uncertainty.
Bitcoin dropped below $77,000 as weaker demand and heavy selling pressure pushed the crypto market lower. In a post on X, Glassnode shared data that shows Bitcoin falling from above $82,000 into the mid-$76,000 range as traders reduced risky positions and market momentum slowed.
Selling pressure intensified across both spot and futures markets. Glassnode reported that Spot CVD fell 848.7%, while perpetual futures CVD dropped 278.7%, pointing to strong sell-side activity. Investors also moved toward safer positions as concerns over inflation, interest rates, and tensions in the Middle East continued to weigh on global markets.
However, long-term Bitcoin holders continued accumulating, helping prevent deeper market instability despite weakening short-term sentiment.
Market Momentum Weakens Across Trading Activity
Futures OI declined by 2.9%, indicating that the market players cut their leveraged bets due to the rising level of uncertainty in the markets. On the other hand, the flows into Bitcoin ETFs have fallen sharply, indicating the softening of demand for institutions in the near term. ETF trading volumes increased by 7%.
The options market also showed growing caution among traders. Demand for downside protection increased as investors prepared for larger price swings ahead. Glassnode said market momentum, spot demand, and speculative positioning have all started weakening across the crypto market.
Meanwhile, profitability indicators cooled as investor enthusiasm faded. Glassnode noted that realized gains slowed while defensive positioning increased across the market. As a result, traders remained cautious as Bitcoin struggled to recover above key resistance levels.
Long-Term Holders Offer Market Stability
Glassnode warned that investors who bought Bitcoin near recent highs continue to put pressure on the market. The firm said more than 7.8 million BTC would remain at a loss around the $76,700 level, creating heavy selling pressure if prices weaken further. Glassnode added, “The supply overhang from buyers near cycle highs remains substantial.”
Source: X
However, Binance Research offered a more balanced outlook. The firm reported that nearly 60% of Bitcoin supply has not moved for more than a year, showing continued conviction among long-term holders. It also noted that exchange balances fell to six-year lows after roughly 500,000 BTC permanently left trading platforms.
In the meantime, there are several significant economic events that will be followed by the investors this week. Investors are expecting to see Nvidia’s earnings, the U.S. producer inflation report, and updates regarding the CLARITY Act in Washington. Hence, in this case, Bitcoin’s future direction may depend on the state of the economy.
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