Spot market conditions for Bitcoin are showing early signs of improvement with increased trading volume and decreasing sell-side pressure, according to analysts from Glassnode.
There has been a “modest” lift in spot Bitcoin (BTC) trading volume, “while the net buy–sell imbalance has broken above its upper statistical band,” reported Glassnode on Monday.
This is signaling a “clear reduction in sell-side pressure,” but despite this, spot demand “remains fragile and uneven,” it added.
Bitcoin declined almost 3% from its weekend high of $95,450 to trade at around $92,550 at the time of writing as markets continue to digest the fallout from the latest escalation in the US/EU trade war.
The asset remains up 6% since the beginning of the year.
“Overall, Bitcoin remains in consolidation, but internal conditions are improving,” said Glassnode, adding that markets are gradually rebuilding.
“While defensive positioning persists, strengthening buy-side dynamics and renewed institutional interest suggest a gradual rebuild toward a more constructive market structure.”
Bitcoin treated as portfolio hedge
Gracie Lin, CEO at OKX Singapore, told Cointelegraph on Tuesday that the report suggests the market has absorbed much of the late-2025 profit-taking and that sell-side pressure is easing.
“Long-term holders appear less inclined to sell into every rally, while ETF flows continue to show institutions buying pullbacks,” she said.
“With fresh tariff headlines, softer growth signals across parts of APAC, and record gold prices in the background, that strengthens the case for Bitcoin being treated less as a short-term trade and more as a portfolio hedge — even as volatility remains a feature of the asset.”
Related: Bitcoin futures OI rebounds 13% as analysts see cautious return of risk appetite
Liquidity decline precursor for a rally
Analysts at Swissblock said the decline in Bitcoin network growth and a recent liquidity drain resemble conditions last seen in 2022.
Similar network levels back then “triggered a BTC consolidation phase as network growth began to recover, even while liquidity remained weak and bottomed out,” they added.
“History shows that the subsequent surge in both metrics fueled the major bull run,” said Swissblock.
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