Glassnode Observes Weakening Demand for Bitcoin

Glassnode analysts see short-term holder cost as key support for Bitcoin.

Glassnode analysts have identified the cost basis of short-term holders as a key support level for digital gold. At the time of publication, this figure stands at $111,400.

A drop below this level could indicate a shift to a bearish trend in the medium term.

On the spot market, indicators such as RSI and CVD have “weakened,” and trading volumes have decreased. Experts believe this reflects a decline in demand and limited trader activity, despite recent growth.

#Bitcoin rallied to $117k into FOMC before slipping below $115k. Spot shows cooling momentum, futures and options signal sell pressure with rising vol, ETF inflows slowed, while on-chain activity improved.

Read more in this week’s Market Pulse👇https://t.co/WJj13LtJhY pic.twitter.com/JaeFNgalhR

— glassnode (@glassnode) September 22, 2025

The futures market showed mixed dynamics. Open interest remains high, but CVD for perpetual contracts has sharply turned negative. Analysts attribute this to aggressive selling by leveraged traders.

After strong inflows, demand for spot Bitcoin-ETF in the US has decreased. Net inflows have turned to outflows, indicating a pause in accumulation by institutional investors.

Network activity has increased, with a rise in the number of addresses and transaction volumes. Meanwhile, transaction fees have decreased, suggesting increased participation without signs of speculative frenzy.

The overall market structure resembles a “buy the rumor, sell the news” pattern. Weakening demand in the spot market, selling in futures, and slowing ETF inflows are putting pressure on the price.

According to analysts, the risk of further slowing activity remains. This can only be avoided if new demand absorbs the current selling pressure.

Market Stabilizes

The cryptocurrency market has stabilized following a wave of forced liquidations exceeding $1.7 billion, as reported by analysts at QCP Capital.

Bitcoin is holding above $112,000, while Ethereum is near $4,100. According to experts, the price drop was one of the largest of the year. Meanwhile, stock markets continued to rise amid a Federal Reserve rate cut, and gold reached a historic high.

The crash occurred amid speculative growth in altcoins ASTER, HYPE, and PUMP, as traders anticipated the start of altseason. The sharp decline without an obvious trigger highlighted the market’s vulnerability with a high proportion of leveraged positions.

The altcoin season index fell from nearly 100 to 65 points. Bitcoin’s dominance rose to 57%, while Ethereum’s share dropped to 12%. This indicates a capital flow back to the leading cryptocurrency.

Analysts noted that institutional support remains strong despite market weakness. Companies like Strategy and Metaplanet continue to accumulate the leading cryptocurrency. Inflows into spot ETFs last week also indicate interest in buying the dip.

QCP Capital emphasized that Bitcoin still shows a 4% increase in September, a month historically considered weak for the crypto market. Traders are preparing for October, traditionally the strongest period for digital gold. There is demand for call options with strikes at $120,000-125,000.

In the current quarter, Bitcoin’s price remained in the $110,000-120,000 range while attention was focused on altcoins. After the recent drop, experts believe the focus may return to the leading cryptocurrency.

Key events this week include Federal Reserve Chairman Jerome Powell’s speech (September 24) and the release of inflation data (September 26). If macro aspects are under control, markets may see this as an opportunity for further Federal Reserve rate cuts. This would provide liquidity inflows in the fourth quarter and act as a catalyst for Bitcoin’s price breakout from its trading range, concluded QCP Capital.

Back in September, CryptoQuant analyst Maartunn noted a worrying signal: many key bull market indicators have turned bearish.