In their weekly Market Pulse report, blockchain data and intelligence platform Glassnode observed a 199% increase in Bitcoin [BTC] Recognize CVD. Notably, Funding Rates indicated a decline in bearish positioning, and the surge in perpetual CVD indicated buy-side aggression from leveraged traders.
Together, these data points highlighted robust bullish momentum, the report concluded. At the same time, the options market presented more cautious prospects. Traders expected higher future volatility, as evidenced by the increase in volatility spread.
The report concluded that the market showed a mix of bullish sentiment and caution from participants. Investors were balancing risk and capital allocation.
No BTC recovery sign yet?
One crypto analyst noted that the market had plenty of capital, but little conviction. In previous cycles, when the stablecoin reserve ratio on Binance reached all-time lows, the Bitcoin price quickly made a strong recovery.
This cycle, the supply of stablecoins on Binance has increased and the supply of BTC on the exchange has decreased. This resulted in unprecedented lows for the exchange stablecoin reserve ratio.
The ratio has been below the lows of the previous cycle for 177 days, but there is no sign of recovery yet. According to the analyst, this highlighted an abundant supply of capital in the form of stablecoins.
However, this capital does not turn into Bitcoin. In other words, market conviction was low. Moreover, bondholders were eager to take profits during the rally, further slowing down recovery efforts.
In a post on X, André Dragosch noted that institutional demand for Bitcoin was increasing rapidly. The head of research for Europe at Bitwise Asset Management wrote that this acceleration in demand was the highest since 2025.
It should be noted that the progress and decline of institutional demand more or less follows price developments. The size of the capital flow can be illuminating. In March and April 2025, the bottom of the local market was bought in a hurry as BTC made a rapid recovery.
The rebound has been under attack for the past two months, but the short-term uptrend was still intact. If the increasing institutional demand is reliable, it is only a matter of time before Bitcoin reaches new local highs.
Final summary
- Glassnode’s Weekly Pulse report showed strong bullish momentum in the perpetuals market and high-spot CVD demonstrating aggressive buying behavior.
- The short-term confidence was in stark contrast to the unprecedented amounts of capital sitting aside on Binance over the past six months, signaling investor hesitation.