Glassnode: Despite Easing Sell Pressure, Market Still Under Strain Amid Weak Profitability And Negative Capital Flows
In Brief
Glassnode’s latest analysis concludes that the crypto market remains broadly defensive, with weak profitability, negative capital flows, and elevated hedging demand despite early signs that selling pressure may be easing.
Blockchain data and intelligence platform Glassnode has released a new market assessment highlighting that the market is still positioned defensively across major sectors.
According to Glassnode, the market momentum has begun to recover from oversold levels, with the 14‑day RSI moving back toward its lower statistical range, suggesting that selling pressure is easing even as buyers remain cautious.
Spot trading volumes have increased, but the firm notes that activity appears reactive to recent price declines rather than indicative of sustained accumulation. Spot CVD remains negative, pointing to continued dominance of sell‑side flows, while ETF outflows have slowed despite positioning that still reflects a defensive stance.
Derivatives markets show a similar pattern. Futures open interest has fallen below typical levels, signalling broad position unwinding and reduced speculative appetite. Funding rates have cooled as traders pull back from leveraged long exposure. Perpetual CVD has steadied, but options markets continue to lean toward downside protection, with lighter open interest, compressed volatility premiums, and skew favouring hedging strategies.
On‑chain indicators reflect a market moving from acute stress toward early stabilisation. Transfer volumes have risen above their upper statistical band, while fee demand remains steady. Capital flows have turned negative, realised cap growth is slowing, and unrealised losses make up a significant share of supply—conditions Glassnode associates with late‑stage correction phases where selling pressure may begin to subside.
Bitcoin Market Remains Defensive As Analysts Point To Weak Profitability And Ongoing Sell‑Side Pressure
Overall, the report describes a market still positioned defensively across major sectors. Profitability remains weak, capital inflows are negative, and hedging demand is elevated following recent repricing.
Although several indicators hint that selling pressure may be moderating, Glassnode notes that a sustained recovery will likely require renewed spot demand capable of supporting prices above recent lows.
At the time of reporting, Bitcoin is trading at $68,925, reflecting a decline of more than 1.48% over the past 24 hours, with prices ranging between $68,446 and a high of $71,003, according to CoinMarketCap data.
Figures from SoSoValue indicate that US spot Bitcoin ETFs recorded a combined net inflow of $145 million on February 9th, suggesting continued institutional participation despite recent market volatility.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
