Bitcoin’s market structure is showing early signs of stabilizing after weeks of pressure, according to a new market note from on-chain analytics firm Glassnode, even as the escalating conflict involving Iran continued to roil global financial markets.
Bitcoin is up 4.3% on the day to around $69,100 and holding relatively steady after recent volatility tied to geopolitical tensions and surging oil prices sent digital assets lower last week.
“Overall, conditions are stabilizing, with momentum, ETF demand, and profitability metrics improving,” the firm wrote, noting that price momentum has firmed modestly but still lacks the strength of a decisive bullish shift.
U.S. equities have swung sharply in recent sessions, with major indexes slipping as investors weighed the inflationary impact of higher oil prices and the risk of a prolonged geopolitical conflict.
Modest uplifts were observed late in the U.S. trading session following Trump’s comments, with the S&P 500 closing 0.8% higher on the day.
Against that backdrop, Glassnode said several indicators within the Bitcoin market are beginning to stabilize.
Futures open interest has increased, suggesting a modest build-up of leverage, while aggressive buying in perpetual derivatives markets points to renewed interest from traders.
"Although its long-term trajectory remains uncertain, recent price action against a backdrop of escalating tensions suggests growing recognition of this function," they added.
ETF flows have also strengthened, rising to $934 million, up 20% or $158 million, from the week prior, Glassnode wrote.
Still, other indicators suggest the recovery remains fragile.
Spot trading volumes remain subdued, and network activity has waned, pointing to limited participation.
“Capital flows remain soft,” the report noted, indicating broader conviction has yet to fully return.
