Fading Spot Volumes and Muted Futures Sentiment Threaten Bitcoin’s Stability

Bitcoin has been recently fluctuating around a familiar price range, but emerging signs point to deeper issues. Can it withstand the pressure being exerted by market sentiment?

Price Movements Reflecting Rising Caution

Bitcoin has been several steps back and forth this past week. Following a concerning dip that brought its price to just a whisker under $99,000 last weekend, it rebounded to around $106,000. Now, some might think bulls are dancing in the streets, but on-chain data suggests that underneath this surface, there are some troubling cracks forming that might lead Bitcoin back to previous lows.

On-Chain Data Shows Concern with Bitcoin’s Strength

Over the last several days, Bitcoin has not only swung up and down, but it seems to have settled within a price band between $100,000 and $110,000 that we’ve seen since early May. According to analytics firm Glassnode, a significant amount of accumulation has happened between $93,000 and $100,000. This accumulation, shown on the Cumulative Volume Delta (CBD) Heatmap, has so far helped buffer Bitcoin during the recent geopolitical turbulence, however, rising market volume indicates that this structural support might be under threat.

Lack of Enthusiasm: Spot Market Analysis

Looking at the most recent weekly update from Glassnode, it seems investor sentiment towards Bitcoin is losing its heat. The report reveals that there’s a significant wave of profit-taking underway that is causing the 30-day realized profit average to decline. Furthermore, on-chain activity has dropped notably—specifically, the 7-day moving average of on-chain transfer volume fell by about 32%, from $76 billion at the end of May to just $52 billion at the end of last week. Currently, spot trading volumes hover around $7.7 billion, a stark contrast to numbers seen during previous price spikes.

Futures Market Shows Declining Interest

But it’s not just the spot market that’s showing signs of cooling off. The futures market is also feeling the pinch. Although Bitcoin retains some appeal on derivatives exchanges, there’s a noticeable drop in enthusiasm surrounding futures trading. Over the weekend, open interest fell by 7%, down from 360,000 BTC to 334,000 BTC, and funding rates have been consistently declining since Bitcoin touched its all-time high earlier in 2025. This downturn hints that traders are starting to lose their confidence, which is pretty telling.

Testing the Limits: Support and Future Risks

When looking at the market’s overall behaviour, Bitcoin has managed to hold its ground within the previously mentioned support zone of $93,000 to $100,000. However, given the current landscape—a combination of dwindling spot volumes, sluggish on-chain activity, and fading futures sentiment—it’s not out of the realm of possibility that this support could face a serious test soon. Should holders, who bought in at these prices, commence selling, this could easily push Bitcoin under that $99,000 mark again next week.

Current Status: What Lies Ahead for Bitcoin?

As it stands, Bitcoin is trading at around $107,100. The journey it’s on reflects much caution and concern amongst investors, a far cry from the rampant enthusiasm we’ve seen in the past. With mounting evidence of declining participation in both spot and futures markets, it looks like traders need a good dose of fresh demand if we’re to see any significant upside in the near future.

In summary, Bitcoin’s current volatility indicates a potential risk of falling below $99,000 once again. The ongoing decline in both spot trading volumes and futures market activity is raising eyebrows among analysts. Unless market dynamics shift positive soon, there could be tough times ahead for BTC.