Market Sentiment Turns Cautious Amid Strong Buying Interest, Glassnode Reports

On April 21, Glassnode released a report indicating that while buying interest remains robust, providing some price support, market sentiment is shifting towards caution. According to BlockBeats, data shows that the cumulative volume delta (CVD) for spot trading has turned negative, signaling increased selling pressure and emerging bearish sentiment. Meanwhile, centralized exchanges are experiencing high trading activity, maintaining strong market participation. In the futures market, an increase in open interest suggests rising risk appetite, but the decline in long funding rates and a sharp drop in perpetual contract CVD indicate traders are more willing to pay a premium for short positions, reflecting a rise in bearish sentiment. In the options market, demand for downside protection has decreased, potentially easing bearish sentiment. However, the contraction in open interest may imply profit-taking, which could affect future volatility. The narrowing of volatility spreads suggests a shift in market sentiment from risk pricing to neutrality. The ETF sector is a highlight, with the MVRV ratio and net inflow of U.S. spot ETFs rising, enhancing profitability and investor interest. Trading activity has significantly increased, showing growing enthusiasm for participating in Bitcoin through regulated channels, with market sentiment cautiously optimistic. Regarding liquidity, the share of hot money has decreased, and the negative change in realized market value has narrowed, indicating dominance by old money and easing net outflows. The supply ratio between short-term and long-term holders remains stable, with long-term holder confidence solid.