Bitcoin cools after hitting $123K as ETF inflows clash with weakening on-chain signals, while Ethereum outperforms with rising volumes.
Bitcoin’s record-breaking rally stalled last week after the cryptocurrency surged above $123,000 before retreating toward $114,000, according to Glassnode’s latest Market Pulse report.
The firm pointed to strong institutional demand through exchange-traded funds (ETFs) but highlighted growing stress across both derivatives and on-chain activity.
ETF inflows reached $881 million over the week, underscoring sustained appetite from traditional investors. However, signs of overheating emerged in derivatives markets.
Futures open interest rose “above extremes” to $47.2 billion before undergoing a sharp deleveraging. At the same time, spot Cumulative Volume Delta (CVD) fell from -$9.8 million to -$87.8 million, suggesting sellers have begun to dominate order books.
On-Chain Weakness Emerges
Participation metrics show further cooling. Active Bitcoin addresses dropped 10% to 717,000, while realized cap change slowed to 4.2%, near the lower end of its historical range.
Glassnode noted that 96% of the Bitcoin supply remains in profit, leaving the market vulnerable to profit-taking pressures.
Options positioning is at record highs and funding rates continue to favor longs, but analysts warned that sell-side aggression is on the rise. Together, these signals point to a market caught between strong institutional inflows and weakening network activity.
Ethereum Gains Relative Strength
Ethereum (ETH), meanwhile, has shown stronger performance against Bitcoin. CryptoQuant reported that the ETH/BTC ratio hit yearly highs, supported by record spot trading volumes and elevated derivatives positioning.
The firm said the momentum “signals a change in market dynamics favoring Ethereum in the short term.”
Why This Matters
The contrasting signals suggest Bitcoin’s historic rally is entering a consolidation phase, while Ethereum may be positioned to capture near-term market attention.
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