Bitcoin’s Next Move Hinges on Institutional Flows & Confidence
Glassnode reports that Bitcoin rebounded from $114,000 to $121,000 after last week’s dip. Bitcoin’s on-chain activity and derivatives sentiment have improved, but spot trading volume dropped sharply. Futures open interest hit pre-deleveraging highs. Funding rates show demand for longs, but trader confidence remains fragile. ETF inflows exceeded $880 million, indicating robust institutional flows. Yet the sustainability of these institutional flows amid price volatility is uncertain. On-chain metrics reveal slower user activity and fees, while adjusted transfers surged, signaling capital rotation. With 96% of Bitcoin supply in profit, market sentiment stays cautious. Bitcoin’s next move hinges on institutional flows and buyer confidence recovering.
Neutral
Glassnode’s data shows conflicting signals. Strong ETF inflows and high futures open interest point to bullish institutional flows. Yet waning spot volume, fragile funding rate dynamics, and cautious on-chain metrics indicate limited buyer confidence. Similar to past corrections, this mix suggests near-term volatility and a neutral market stance until institutional flows remain steady and confidence recovers. In the short term, price swings may persist as traders weigh profit-taking against new inflows. In the long term, sustained institutional flows could support a bullish trend if confidence returns.