Weakening Demand Signals Uncertain Future for Bitcoin, Says Glassnode

Bitcoin’s market dynamics indicate a potential phase of stagnation or further decline as buying momentum continues to weaken, according to insights from the analytics platform Glassnode.

The firm highlighted that Bitcoin’s short-term demand is losing steam. One key indicator, referred to as “Hot Capital,” which tracks recently active capital within the past seven days, has seen a dramatic drop of 66.7%, falling from its December 12 high of $96.2 billion to just $32 billion.

Additionally, Glassnode pointed to a slowdown in exchange volume momentum and persistently low funding rates as further evidence of reduced market activity. The 30-day average exchange volume is now approaching the 365-day average, signaling a significant decline in capital inflows since Bitcoin’s December market peak.

Funding rates, a measure of trader sentiment in perpetual futures markets, remain below the neutral threshold of 0.01%. This reflects a lack of enthusiasm from speculative buyers, even after Bitcoin briefly rallied to $102,000. Without a new market driver, the subdued demand suggests Bitcoin could either consolidate in a narrow range or face additional downside pressure.

Currently priced at $92,579, Bitcoin has declined nearly 3% over the past 24 hours and over 4% in the last week. The cryptocurrency is still trading more than 14% below its December all-time high of $108,135.