Glassnode Report Highlights Bitcoin Market Fragility

2 mins mins

Key Points:

Bitcoin market risk appetite declines, echoing early 2022 trends.
ETF outflows signal reduced demand, heightened market caution.
Options data reveal investor preference for risk-off strategies.

Glassnode’s latest report highlights parallels between the current Bitcoin market and the early 2022 bear period, amid decreased open interest and cautious sentiment in derivatives.

This similarity suggests a possible repeat of investor behaviors, impacting market stability and prompting a decreased risk-taking appetite.

Bitcoin’s Risk Appetite Falls as 2022 Parallels Spur Caution

Glassnode’s current assessment, discussed by PANews, emphasizes a structurally fragile Bitcoin market akin to 2022 conditions. Open interest has decreased, and market sentiment indicates a shift toward risk-off strategies. This change highlights a cautious investor outlook, driven by recent liquidation events and a drop in ETF demand.

Glassnode notes weak ETF demand and caution in derivative markets, reflecting the risk-off sentiment prevalent among investors. The consistent decline in open interest points to reduced speculative interest and a more balanced market environment.

Futures open interest has continued its steady decline through late November, erasing much of the speculative build-up… traders appear reluctant to express directional conviction, instead favouring a conservative, risk-off stance. — Glassnode Insights Team, Analysts, Glassnode

Historical Trends: Bitcoin Faces New Challenges Amid Market Adjustments

Did you know? The last time Bitcoin supply faced similar losses over 25% was during the 2022 market downturn, drawing parallels with the current considerable outflows in US spot ETFs.

According to CoinMarketCap, Bitcoin (BTC) is priced at $88,977.15, with a market cap of $1.78 trillion. Its dominance stands at 58.52%. Despite high trading volumes, BTC has seen a 90-day decline of 20.71%, reflecting caution in the market as of December 7, 2025.

bitcoin-daily-chart-4815 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 13:31 UTC on December 7, 2025. *Source: CoinMarketCap*

From the Coincu research team, potential regulatory exchanges could lead to more volatile pricing. Derivatives adjustments may align with how previous bull and bear cycles evolved, reinforcing cautious moves. Investor behavior may continue displaying preferences for more conservative planning in financial forecasts. For more in-depth insights on Bitcoin’s market trends and performance, visit Glassnode’s insights.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.