Bitcoin’s record-breaking rally stalled last week after the cryptocurrency surged above $123,000 before retreating toward $114,000, according to Glassnode’s latest Market Pulse report.
The firm pointed to strong institutional demand through exchange-traded funds (ETFs) but highlighted growing stress across both derivatives and on-chain activity.
ETF inflows reached $881 million over the week, underscoring sustained appetite from traditional investors. However, signs of overheating emerged in derivatives markets.
Sponsored
Futures open interest rose “above extremes” to $47.2 billion before undergoing a sharp deleveraging. At the same time, spot Cumulative Volume Delta (CVD) fell from –$9.8 million to –$87.8 million, suggesting sellers have begun to dominate order books.
On-Chain Weakness Emerges
Participation metrics show further cooling. Active Bitcoin addresses dropped 10% to 717,000, while realized cap change slowed to 4.2%, near the lower end of its historical range.
Glassnode noted that 96% of the Bitcoin supply remains in profit, leaving the market vulnerable to profit-taking pressures.
Options positioning is at record highs and funding rates continue to favor longs, but analysts warned that sell-side aggression is on the rise. Together, these signals point to a market caught between strong institutional inflows and weakening network activity.
Ethereum Gains Relative Strength
Ethereum (ETH) , meanwhile, has shown stronger performance against Bitcoin. CryptoQuant reported that the ETH/BTC ratio hit yearly highs, supported by record spot trading volumes and elevated derivatives positioning.
The firm said the momentum “signals a change in market dynamics favoring Ethereum in the short term.”
Why This Matters
The contrasting signals suggest Bitcoin’s historic rally is entering a consolidation phase, while Ethereum may be positioned to capture near-term market attention.
Check Out DailyCoin’s trending crypto news:
WEMIX Token Jumps 11% Amid Legend of Ymir Pre-Registration Launch
Epic Chain (EPIC) Soars as Ripple-Backed Token Bets on $50T RWA Market
People Also Ask:
Bitcoin often retreats after hitting record levels due to profit-taking, market leverage, or weakening on-chain activity.
Strong ETF inflows reflect institutional demand, but they don’t eliminate volatility. Other factors, like derivatives and network participation, still shape price action.
When nearly all supply is profitable, investors may be more likely to sell, increasing the risk of short-term corrections.
Consolidation typically signals a pause in upward momentum, giving markets time to absorb gains before deciding on the next trend direction.
Ethereum can outperform Bitcoin when trading volumes rise and derivatives activity favors ETH, reflecting shifts in investor focus and market sentiment
