Glassnode Analysts Warn Bitcoin Momentum Cools Amid Seller Exhaustion

Glassnode's latest report shows Bitcoin slipping into a liquidity vacuum with declining short-term holder profits and significant Bitcoin ETF outflows, raising investor concerns.

BTC

Summary

Glassnode’s report indicates that Bitcoin dropped from a historical peak of $123K to below $116K, entering a liquidity vacuum down to $110K. Short-term holder profits fell from 100% to 70%, and Bitcoin ETFs saw a net outflow of 1500 BTC on August 5—the largest since April 2025—with perpetual contract funding rates declining, signaling reduced leveraged positions.

Terms & Concepts
  • Bitcoin ETF: An exchange-traded fund that tracks Bitcoin's price, allowing investors exposure without directly owning the cryptocurrency.
  • Perpetual Contract Funding Rates: Regular payments exchanged between traders to align the price of perpetual contracts with the underlying asset.
  • Liquidity Vacuum: A market condition characterized by low liquidity, which can lead to significant price volatility during trading.