Altcoins News

Story: Bitcoin Hovers Near $71K as Spot Buying Stays Muted Despite ETF Strength

By Evie Vavasseur

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Bitcoin's price action stabilized this week. The cryptocurrency pulled back from its $74,000 peak but didn't crash hard like many feared it would.

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Glassnode dropped their weekly report March 9th, and the picture they paint is pretty mixed.

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The spot trading numbers tell a concerning story that can't be ignored by serious traders. RSI ticked up slightly from 45.2 to 47.7 over two weeks, which sounds good on paper.

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And derivatives markets are going wild in both directions. Futures open interest rose 5.1% to $29.4 billion as speculators pile in.

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Perpetual CVD exploded 201.7% to $172.6 million. That's aggressive buying in leveraged markets, but funding rates went negative at $391.7K.

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Options traders aren't panicking though. Open interest grew from $32.8 billion to $34.1 billion, and the volatility spread narrowed from negative 25.78% to negative 17.64%.

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On-chain metrics paint a sleepy network picture that doesn't scream bullish momentum. Active addresses fell 2.0% to 649.3K while fee volume dropped 5.1% to $170.5K.

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Rafael Schultze-Kraft from Glassnode said March 9th that Bitcoin's recovery lacks the spot foundation needed for sustained gains.

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Profitability metrics did improve modestly across the board. Supply in profit rose from 54.6% to 56.8%, and NUPL climbed from negative 31.9% to negative 26.7%.

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Jan Happel from Glassnode told Bloomberg March 9th that ETF inflows provide pockets of strength.

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Bitcoin trades around $70,755 right now. Analysts think a break above $71,000 could provide psychological lift, but Happel believes any gains without spot volume backing won't…

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Willy Woo tweeted March 10th about weak spot activity preventing Bitcoin from breaking higher.

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David Puell noted March 9th that transfer volume increases could be positive, suggesting more Bitcoin movement between wallets.

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Glassnode's March 9th data reveals nuanced investor behavior that defies simple bullish or bearish labels.

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The firm calls current conditions "cautiously optimistic" but warns that soft capital flows keep the market vulnerable.

The Currency Analytics

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