Glassnode: The battle between bulls and bears in the market is intensifying; the spot CVD turning negative indicates increased selling pressure, but ETF capital inflows provide support.

BlockBeats News, April 21 — In the latest report, Glassnode states that although buying interest remains strong, providing some buffer for prices, market sentiment is turning cautious. Data shows that the cumulative volume delta (CVD) of spot trading has shifted from positive to negative, indicating increasing selling pressure and the emergence of a bearish mood. Meanwhile, trading activity on centralized exchanges remains high, with market participation at elevated levels.

In the futures market, an increase in open interest suggests rising risk appetite, but the funding rate for long positions has significantly decreased. The perpetual contract CVD has plummeted sharply, indicating traders are more willing to pay premiums for short positions, with buyers becoming less proactive and bearish sentiment intensifying.

In the options market, the demand for downside protection has decreased, possibly easing bearish sentiment, but the contraction of open interest may indicate profit-taking, which could impact future volatility. The narrowing of volatility spreads suggests market sentiment is shifting from risk pricing to neutrality.

The ETF sector has become a highlight, with the MVRV ratio and net inflows of US spot ETFs rising, indicating improved profitability and increased investor interest. Trading activity has surged, reflecting a growing enthusiasm for participating in Bitcoin through regulated channels, with market sentiment cautiously optimistic.

Regarding liquidity, the share of hot money has declined, and the negative change in realized market value has narrowed, indicating that the dominance of old money and net outflows are easing. The supply ratios of short-term and long-term holders remain stable, with long-term holders maintaining confidence.