Glassnode: Bitcoin Maintains Consolidation, Outflows and Leverage Cooling Indicate Market Caution

Reported by Jinse Finance, on July 27, according to Glassnode's latest "BTC Market Pulse" report, Bitcoin previously retraced to $64,000 before rebounding to approximately $65,100, currently remaining in a consolidation range. Declining leverage levels, outflows from regulated investment products, and weak on-chain activity indicate the market is in a cautious consolidation phase. The report highlights that buying momentum in the perpetual contracts market has weakened, and speculative confidence has declined. Although open interest has slightly increased, funding rates for long positions have cooled significantly, suggesting leverage usage is becoming more rational. Options open interest continues to grow, with traders pricing in higher uncertainty for the future. Institutional demand has simultaneously weakened, with regulated investment products turning to net outflows and weekly trading volumes showing a noticeable decline. However, overall institutional holdings remain slightly profitable, and valuation metrics are relatively stable. On-chain data shows that the number of active addresses remains stable, but transaction settlement pressure and capital inflows are still low. Long-term holders continue to maintain confidence, supporting market resilience. Glassnode believes Bitcoin is currently in a calm transitional phase, with selling pressure easing, but participation across spot, derivatives, and institutional channels remains cautious.