Glassnode: Bitcoin Shows Late-Stage Correction Signs as Spot Demand Remains Weak

Bitcoin is showing characteristics of a late-stage correction, with recent buyers facing heavy losses and realized losses remaining elevated, Glassnode said in its weekly market report. According to ChainCatcher, Glassnode said Bitcoin’s drop to around $60,000 triggered a notable deleveraging event that cleared a large amount of speculative positioning. While the move helped reset leverage levels, the report said spot demand has not yet shown a meaningful recovery. Glassnode added that the options market remains defensive, with implied volatility staying high and strong demand for downside protection. It also noted that dealer positioning is concentrated near current spot levels. The report said declining institutional participation and a slowdown in corporate Treasury accumulation further suggest risk appetite remains subdued. Overall, Glassnode said the market appears to be moving deeper into a capitulation phase. It added that while leverage has largely reset and valuation indicators have reached historically low levels, the demand response typically associated with long-term market bottoms has not yet emerged.