Data: Bitcoin spot and perpetual contract selling pressure surges, options market shifts to bearish protection

Glassnode stated that the signals from various Bitcoin derivatives markets are diverging, and the overall structure is beginning to weaken. A significant shift in selling pressure has been observed, with the cumulative volume delta (CVD) for spot trading plummeting by 848.7%. Nevertheless, spot trading volume has increased by 4.2%, indicating a rise in trading activity, but this may stem more from trading interest rather than bullish sentiment. Open interest has slightly decreased by 2.9%, reflecting a cautious attitude towards leverage in an uncertain environment. However, the funding rate paid by the long side has surged by 136.6%, showing a rebound in demand for long positions and an increase in bullish sentiment among traders. Yet, the CVD for perpetual contracts has sharply declined by 278.7%, highlighting significant selling pressure and indicating that bearish sentiment still dominates.

The 25-Delta Skew for options has risen by 42.75%, as traders seek more downside protection, with the market clearly turning bearish. Meanwhile, open interest and volatility spreads for options have increased by 1.7% and 124.52% respectively, indicating heightened market participation and increased expectations for future price volatility. The MVRV of the US spot ETF has decreased by 6.1%, with net flows for the ETF deteriorating sharply, reflecting a decline in institutional confidence. However, ETF trading volume has risen by 7%. On-chain activity presents a mixed picture: the number of active addresses has decreased, while the adjusted transfer volume has increased, suggesting relatively low network usage, but large amounts of capital continue to move.

Overall, as momentum, spot demand, and speculative positions weaken across the board, the Bitcoin market structure is beginning to soften. Options traders are increasingly hedging against downside risks, liquidity and profitability indicators continue to cool, and the market structure remains relatively stable, but stable liquidity and the strength of long-term holders still provide some resilience to the market.

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