Bitcoin Price Momentum Stalls: What It Means for Investors

By Extreme Investor Network
Published on June 3, 2025

Bitcoin’s recent price fluctuations have captured the attention of investors as it hovers below the $111,000 mark. According to recent analysis from Glassnode, this stall has led to a cooling period within the market, where both on-chain data and trading indicators suggest a consolidation phase rather than a continuation of bullish momentum.

Understanding the Market Dynamics

Spot and Futures Market Insights

The spot market, which once fueled Bitcoin’s impressive rally, is currently showing signs of fatigue. The Relative Strength Index (RSI) has dipped into neutral territory, showcasing reduced buying momentum. Moreover, the spot Cumulative Volume Delta (CVD) has turned negative and trading volumes are decreasing, indicating a pullback in demand.

Interestingly, the futures market still shows high open interest, but traders are approaching positions cautiously. There’s been a decline in long-side funding rates, suggesting that leveraged positions are being unwound. This behavior indicates a tactical retreat rather than a complete exit from the market.

ETF and Options Market Activity

As we dive deeper into market activities, the Exchange-Traded Fund (ETF) landscape appears subdued. Net flows have decreased significantly, and trade volumes have plummeted. This reduced engagement from traditional finance suggests that institutional players are adopting a wait-and-see approach.

On the flip side, the options market remains somewhat lively. We notice a dip in open interest along with a rise in the 25-delta skew, which remains negative. This indicates renewed call-side interest, albeit with less conviction than before.

The Role of On-Chain Activity

On-chain fundamentals paint a picture of an ongoing consolidation phase. Key metrics including active addresses and transfer volumes are in decline, coupled with decreasing transaction fees. The liquidity flow reveals modest capital inflows, dominated largely by long-term holders. However, the proportion of "hot" capital is far from the peaks we observed in the previous market cycle.

Profitability metrics also seem to have adjusted. The percentage of Bitcoin supply in profit has moved away from euphoric highs, while realized profit-taking has diminished. The Net Unrealized Profit/Loss (NUPL) further indicates a shift into neutral territory. Investors are displaying increased caution, picking and choosing the right moments to realize gains.

What’s Next for Bitcoin Investors?

The current market conditions suggest a high-risk phase; however, it lacks the extreme overheating seen in December 2024. For the Bitcoin rally to regain its strength, a resurgence in demand from both retail and institutional investors is crucial. Without this renewed interest, we may continue to experience a cool-down period.

At Extreme Investor Network, we encourage our readers to stay informed and adapt their investment strategies based on current market dynamics. Diversifying your portfolio, engaging with quality research, and keeping an eye on evolving trends can be vital in navigating these uncertain waters.

Conclusion

As the market stands poised on the brink of potential shifts, it is essential for investors to remain engaged and informed. While current trends may indicate a slowdown, history has shown us that the cryptocurrency landscape can change rapidly. Keep monitoring the signals, and ensure you make decisions based on comprehensive analysis rather than fleeting emotions.

For more insights and expert analysis, stay connected with us at Extreme Investor Network.

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