BTC Market Pulse: Week 27

Overview

Bitcoin extended its decline over the past week, breaking below the $60K level before finding support near $58K and stabilising around $60K into the weekend. While downside momentum has eased relative to the sharp sell-off earlier this month, buyers have so far lacked the conviction required to establish a sustained recovery, leaving price range-bound near local lows.

Beneath the surface, the market remains in a phase of structural adjustment as capital continues to contract and participants adopt a more defensive posture. Spot markets are still experiencing persistent net selling despite an increase in trading activity, suggesting that available liquidity is being used primarily to distribute rather than accumulate Bitcoin at current prices.

In derivatives markets, leverage continues to unwind as open interest contracts and traders increasingly favour downside protection over directional exposure. Options skew has pushed well above its historical range, highlighting elevated demand for protective positioning, while funding remains relatively subdued, reflecting a market that has become increasingly cautious despite stabilising prices.

Institutional sentiment has also softened. US Spot ETFs have slipped into an aggregate unrealized loss position, and continued net outflows suggest institutional investors remain reluctant to add exposure. Elevated ETF trading volumes indicate activity remains high, but the balance of flows continues to favour capital exiting rather than entering the asset class.

On-chain, the picture is more balanced. Entity-adjusted transfer volume has recovered, pointing to continued large-scale capital movement, while subdued network fee demand suggests underlying network activity remains muted. At the same time, rising hot capital indicates that a greater share of supply is now held by short-term, price-sensitive investors, increasing the market's susceptibility to volatility. Taken together, Bitcoin appears to be stabilising around the $60K region, but with spot order flow, derivatives positioning, and institutional demand all remaining defensive, a sustained recovery is likely to require a meaningful return of buyer conviction.

Off-Chain Indicators

On-Chain Indicators

Don't miss it!

Smart market intelligence, straight to your inbox.