Glassnode: BTC Drops to Around $62,600, On-Chain Exchange Flows Weaken but Long-Term Holders Remain Resilient

August 3rd, Glassnode released the "BTC Market Pulse: Week 32" report, stating that Bitcoin recently fell to around $62,600. The spot demand was weak, derivative market defensive sentiment was on the rise, but on-chain activity strengthened, long-term holder confidence, and ETF inflows continued to support the market.

The report pointed out that Bitcoin failed to sustain its rebound above $66,000 and has since retraced from the $65,000 region. The current price trend reflects a weakening in spot momentum, with sustained net selling pressure and lower trading activity keeping the market in a consolidation phase lacking clear breakout momentum.

In the derivative market, the overall open interest decreased, but the perpetual contract funding rate rose, and active seller volume eased. The options market still leans defensively, with the 25 Delta skew widening, indicating increased demand for downside protection, while speculative open interest continues to decline.

As for the ETF market, there has been improvement, with net inflows and trading volume picking up over the past week, showing institutional investors reallocating funds through regulated channels.

On-chain data-wise, Glassnode stated that Bitcoin network activity has significantly increased, with both the daily active address count and entity-adjusted transfer volume breaking above the upper bound of their respective ranges, indicating a rise in network usage and economic activity. Additionally, there has been a slight increase in new fund inflows, and the outflow pressure has eased.

Regarding the ownership structure, the ratio of short-term holders to long-term holders remains close to a historical low, showing that long-term investors still maintain strong conviction. However, the overall market profitability continues to decline, with the profit-supply ratio approaching a cyclical low, and investor spending behavior more skewed towards defensive stop-losses.

In conclusion, Glassnode summarized that the Bitcoin market is currently in a transitional phase. The stability of long-term holders, enhanced on-chain activity, and a resurgence in ETF demand provide structural support. Still, valuation pressure, lack of spot momentum, and a defensive stance in derivatives restrict market risk appetite.