BlockBeats report: On May 26, over the past week, Bitcoin’s price dropped from $79,000 to a local low of approximately $74,000 before rebounding to around $77,000, with price momentum declining by 21.7%, indicating weak price action and rising selling pressure. Meanwhile, spot CVD and perpetual CVD increased by 77.2% and 35.5% respectively, suggesting that selling pressure is easing and market sentiment is becoming more balanced. Market activity has also cooled, with spot trading volume down 10% and open interest in futures contracts down 3.5%, reflecting reduced speculative appetite and a more cautious market environment.
Nevertheless, signs of renewed risk appetite are emerging. Long funding rates surged 135.4%, highlighting strong demand for long exposure and improved bullish sentiment. In the options market, the 25-Delta Skew rose slightly, indicating a modest increase in demand for downside protection, while open interest remained largely stable, suggesting positions remain intact.
In traditional financial markets, the MVRV of U.S. spot ETFs rose 0.69%, indicating a slight expansion in unrealized gains for ETF holders. Meanwhile, net ETF flows improved by 28.9%, reflecting reduced outflows and more stable sentiment, although ETF trading volume declined by 22.9%, signaling a slowdown in speculative activity.
In terms of network activity, the number of daily active addresses and entity-adjusted transfer volume saw a slight decline, suggesting the market may be entering a consolidation phase or experiencing reduced investor engagement. Liquidity indicators show improved stability, reflecting higher market confidence and lower speculative activity.
However, profitability indicators suggest that market pressure may be increasing. The net unrealized profit and loss ratio has declined significantly, and the realized profit and loss ratio indicates that losses have been realized more than profits, reflecting a cautious and potentially bearish market sentiment. Overall, the market is showing signs of cooling and consolidation, characterized by reduced activity, cautious sentiment, and some remaining risk appetite. This complex situation underscores the importance of closely monitoring market dynamics and investor behavior.