Bitcoin (BTC), rose to $94,700 due to optimism regarding the potential easing of U.S.-China customs tariffs and the impact of significant institutional capital inflows.
However, the on-chain analytics platform Glassnode warns that the market has not yet fully transitioned into a bullish zone.
In a recent report, Glassnode stated that U.S. spot Bitcoin ETFs recorded a record net inflow of $1.54 billion on April 22, indicating a wave of institutional demand. This increase helped BTC briefly regain its Short-Term Holder (STH) Cost Basis at the $92,900 level, which is a critical threshold that typically separates bearish and bullish market phases.
During the rally, approximately 5% of Bitcoin’s circulating supply changed hands, and the Profit Supply Percentage increased from 82.7% to 87.3%. Nevertheless, Glassnode indicated that some short-term holders are taking profits, as evidenced by the increase in realized gains and the STH Profit/Loss Ratio reaching a level typically associated with high exit risk, which is 1.0.
The dynamics of the futures market are also following a complicated trend. While the open position ratio has increased by 15.6%, the shift of funding rates into the negative indicates that short positions have increased despite the widespread rise in prices. According to the report, this situation adds another layer of complexity to the market outlook, indicating a potential developing short squeeze.
Glassnode stated, “Although it is encouraging that Bitcoin’s STH cost base has surpassed, it has not yet been confirmed as a sustainable support,” and added: “The market is at a significant decision point.”
The analysis also noted that the performance gap between Bitcoin and Ethereum has widened, attributing this situation to sharp differences in ETF inflows. Bitcoin ETFs have seen inflows exceeding 10% of BTC’s spot volume in two waves over the past two weeks, while Ethereum ETFs recorded less than 1% of ETH’s spot volume.
“The inequality in ETF flows is an indicator of the deviation in institutional appetite,” said Glassnode, suggesting that this situation could explain Ethereum’s recent underperformance compared to Bitcoin.
While Bitcoin tests critical levels, analysts and investors will closely watch whether the bulls can maintain momentum above $92,900.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
