Crypto market cautious as liquidity declines and selling pressure eases

The crypto market is trading within a range as liquidity on major exchanges has decreased and aggressive selling pressure has eased, according to a Glassnode report. Caution persists in derivatives markets, with buying activity and speculative demand slowing in the perpetual futures market. Although total open interest rose slightly, funding rates for long positions fell sharply. In contrast, options open interest increased and volatility premiums widened, indicating that investors are preparing for potential greater volatility. Institutional demand has also weakened somewhat. While Bitcoin continues to receive firm support from long-term holders, the market is in a transitional phase characterized by caution across spot, derivatives, and institutional investment.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.