According to Glassnode analysts, the spot market for Bitcoin is showing signs of improvement. This includes increased trading volumes and decreased sell-side pressure.
It has happened that there have been some a “modest” Lift in Spot BitcoinBTC) trading volume, “while the net buy–sell imbalance has broken above its upper statistical band,” reported Glassnode is on Monday.
It is the signaling of a “clear reduction in sell-side pressure,” Spot demand is high, despite the fact that. “remains fragile and uneven,” It added.
Bitcoin dropped almost 3% off its weekend peak of $95,450 and traded at $92,550. time While markets continue to process the impact of the recent escalation, we have decided to write. US/EU trade war.
Since the start of this year, the asset has risen by 6%.
“Overall, Bitcoin remains in consolidation, but internal conditions are improving,” Glassnode added that the markets are gradually rebuilding.
“While defensive positioning persists, strengthening buy-side dynamics and renewed institutional interest suggest a gradual rebuild toward a more constructive market structure.”
Bitcoin used as portfolio hedge
Gracie Lin is the CEO of OKX Singapore. She told Cointelegraph that on Tuesday the report indicated that the market had absorbed most of the profit-taking in the second half 2025 and that pressure from the sellers was easing.
“Long-term holders appear less inclined to sell into every rally, while ETF flows continue to show institutions buying pullbacks,” She said
“With fresh tariff headlines, softer growth signals across parts of APAC, and record gold prices in the background, that strengthens the case for Bitcoin being treated less as a short-term trade and more as a portfolio hedge — even as volatility remains a feature of the asset.”
Related: Bitcoin futures OI rebounds 13% as analysts see cautious return of risk appetite
A decline in liquidity is a precursor to a rally
Swissblock analysts said that the recent decline in Bitcoin growth, and the sudden liquidity drain are similar to conditions seen last in 2022.
The same network level back then “triggered a BTC consolidation phase as network growth began to recover, even while liquidity remained weak and bottomed out,” Additions to the list include:
“History shows that the subsequent surge in both metrics fueled the major bull run,” Swissblock is a word that’s often used.
Magazine: Wintermute on crypto recovery, BTC allocation cut on quantum risk: Hodler’s Digest
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Source: cointelegraph.com
