Bitcoin Slips Back Toward $62,600 After Losing $66,000 as Spot Demand Cools and Derivatives Turn Defensive

Bitcoin has pulled back to roughly $62,600 after failing to hold above $66,000, according to a new report from on-chain analytics firm Glassnode. Glassnode said the latest drop reflects softening spot-market momentum. Persistent net selling and subdued trading volumes are keeping BTC in a consolidation range, with limited signs of an imminent breakout. The report added that the rebound that started after reclaiming $66,000 stalled, with price again retreating from the $65,000 area. Derivatives data pointed to a more defensive posture. Total open interest across derivatives markets declined, while funding rates in perpetual futures were reported to be rising again. Active selling volume eased somewhat, but options traders remained cautious. Glassnode highlighted a widening in the 25-delta skew, signaling stronger demand for downside protection. The continued reduction in speculative short positions was also cited as evidence that overall risk appetite remains constrained. By contrast, the spot Bitcoin ETF market showed signs of improving sentiment. Over the past week, both net inflows and trading volumes recovered, suggesting institutional investors are beginning to rebuild exposure through regulated vehicles. On-chain activity also re-accelerated. Glassnode said daily active addresses and asset-adjusted transaction volume moved above the upper bound of its statistical range, pointing to a notable uptick in network usage and economic throughput. The firm added that a modest recovery in new capital inflows has helped relieve pressure associated with prior capital outflows. Investor composition remains skewed toward long-term holders. Glassnode noted the short-term-to-long-term holder ratio is still near historically low levels, indicating long-term investors have largely maintained conviction despite the drawdown. Even so, overall market profitability continues to deteriorate. As the share of profitable Bitcoin supply nears cyclical lows, Glassnode observed a growing tendency toward cut-loss behavior and risk reduction in spending patterns. Glassnode concluded that Bitcoin is in a transitional phase. Structural support from steady long-term holders, stronger on-chain activity, and improving ETF demand is being offset by valuation pressure, weak spot demand, and defensive positioning in derivatives markets. This is not investment advice.