Bitcoin is trading in the $93k-$97k range, leading to a broader cooling in the digital asset market. Capital inflows are weakening and derivatives activity is declining. The accumulation patterns of short-term holders are somewhat reminiscent of May 2021, which was a relatively challenging set of market conditions.
Executive Summary
🔸Following Bitcoin's second attempt to break above $105,000 at the end of January, the market has entered a contraction phase, with monthly price momentum declining sharply in the underlying assets.
🔸Solana has emerged as the market leader in terms of capital inflows over the past two years, unlike Ethereum, which has relatively struggled to attract sustained demand.
🔸Open interest in fixed futures has declined in Bitcoin (-11.1%), Ethereum (-23.8%), Solana (-6.2%) and the Memecoins index (-52.1%), reflecting reduced appetite for leveraged speculation.