TLDR
- Bitcoin’s spot market shows improvement with increased trading volume and reduced sell-side pressure.
- Despite the improvements, demand for Bitcoin remains fragile and uneven according to Glassnode analysts.
- Bitcoin’s price dropped by nearly 3% from its weekend high but remains up 6% since the start of the year.
- Glassnode believes Bitcoin’s market is gradually rebuilding with stronger buy-side dynamics and institutional interest.
- Long-term holders are less likely to sell during rallies, strengthening Bitcoin’s position as a portfolio hedge.
Recent data from Glassnode highlights that Bitcoin’s spot market is showing signs of improvement, marked by a modest increase in trading volume. Analysts from the on-chain analytics firm observed a reduction in sell-side pressure, which is seen as a positive development. Despite this, they emphasized that the demand for Bitcoin remains fragile and uneven, signaling caution in the market.
Spot Market Shows Improvement
According to Glassnode, there has been a modest lift in Bitcoin’s trading volume, signaling a recovery in the market. The net buy-sell imbalance has broken above its upper statistical band, which suggests reduced sell-side pressure. However, the analytics firm pointed out that the overall demand for Bitcoin remains fragile.
Even with these improvements, the market is still facing volatility. Bitcoin’s price declined by nearly 3% from its weekend high of $95,450 to around $92,550. This drop comes as global markets process the impact of ongoing trade tensions between the US and the EU.
Bitcoin’s Resilience Amid Market Uncertainty
Despite the ongoing challenges, Bitcoin remains up 6% since the beginning of the year, reflecting some resilience in the face of uncertainty. Glassnode believes that the market is gradually rebuilding, even though defensive positioning still prevails among investors. The analysts noted that strengthening buy-side dynamics could lead to a more constructive market structure over time.
The ongoing market shifts are creating a scenario where institutional interest in Bitcoin is increasing, contributing to stronger demand. Analysts also observed that long-term holders are becoming less inclined to sell during rallies, suggesting confidence in Bitcoin’s long-term value.
Gracie Lin, CEO of OKX Singapore, shared her perspective on the market, explaining that Bitcoin is increasingly seen as a portfolio hedge. According to Lin, the market has absorbed much of the late-2025 profit-taking, and sell-side pressure is easing. She noted that long-term holders are now less likely to sell during rallies, adding to the strength of Bitcoin’s market position.
She further explained that institutional investors are continuing to buy Bitcoin during pullbacks, supported by ETF flows. With softer growth signals across parts of Asia and rising gold prices, Bitcoin’s role as a hedge against economic uncertainty is gaining traction.
Liquidity Decline Could Precede a Rally
Analysts at Swissblock observed a decline in Bitcoin’s network growth and liquidity, reminiscent of conditions seen in 2022. They pointed out that similar network levels triggered a consolidation phase in the past, which later led to a major bull run. As liquidity remains weak, they believe Bitcoin may be on the verge of a surge in both network growth and price.
The analysts suggested that Bitcoin’s internal conditions are improving despite the weak liquidity. They emphasized that the conditions observed now closely mirror the setup before the last significant rally.
