Source: Cointelegraph Original: "{title}"
The price of Bitcoin has dropped 5.6% over the past week, and for the first time since November 9, 2024, it has closed below the $80,000 support level for three consecutive days.
Data from Glassnode indicates that during the same period, Bitcoin's futures trading volume increased by 64%. The analysis platform stated, "This marks a reversal from the past month," when futures trading volume was gradually declining.
The rise in futures trading volume suggests increased market activity, but further analysis of the broader futures market reveals a more complex outlook. The total value of Bitcoin's open interest, which refers to unsettled futures contracts, has decreased by 19% over the past two weeks.
Bitcoin futures trading volume chart provided by Glassnode. Source: X.com
This decrease indicates that despite the increase in trading volume, some traders are choosing to close their positions rather than hold them, possibly to lock in profits or reduce risks associated with a bearish market structure for Bitcoin.
Total market liquidation chart. Source: CoinGlass
Total cryptocurrency liquidations reached $2 billion between April 6 and April 8, further reinforcing the likelihood of traders adopting a cautious stance.
Collectively, this data suggests that Bitcoin may be in a transitional phase. The surge in futures trading volume reflects growing interest and speculative activity, which could indicate the end of a correction phase and the beginning of an accumulation period. However, the decline in open interest highlights that traders are adopting risk-averse strategies amid ongoing macroeconomic uncertainty.
If Bitcoin's price fails to recover while futures trading volume and open interest align, this could signal the start of a bear market. Conversely, if Bitcoin's price rises alongside increases in open interest and trading volume, it would suggest the arrival of an accumulation phase, potentially followed by an upward trend.
Limited outflows from spot Bitcoin ETFs
Currently, major U.S. stock indices have fallen more than 20% from their historical highs, with the S&P 500 losing an entire year's worth of gains in just one month. Although traditional institutions may have faced significant unrealized losses over the past two weeks, data on outflows from spot Bitcoin ETFs indicates that market panic has yet to materialize.
Total flow data for spot Bitcoin ETFs. Source: Sosovalue
In the past two weeks, total outflows from spot Bitcoin ETFs have been just below $300 million. This discrepancy highlights Bitcoin's resilience among institutional investors.
Unlike the sell-offs seen in the stock market, the limited outflows from spot Bitcoin ETFs suggest that institutional investors have not panicked and may view Bitcoin as a hedge or still maintain confidence in its long-term value amid turmoil in traditional markets.
Related: Ethereum price data shows $1,000 is the ultimate bottom for Ethereum
This article does not contain investment advice or recommendations. Every investment and trading operation involves risks, and readers should conduct their own research before making decisions.
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