Glassnode: Bitcoin spot and perpetual contracts face surging sell pressure, options market shifts toward downside protection

BlockBeats news, on May 19, Glassnode stated that Bitcoin’s various derivatives market signals are diverging, and the overall structure is beginning to weaken. There is a clear shift towards selling pressure, with the spot cumulative trading volume difference (CVD) dropping sharply by 848.7%. Despite this, spot trading volume has risen by 4.2%, indicating increased trading activity, although this may be driven more by trading interest than bullish sentiment.

Open interest has slightly decreased by 2.9%, reflecting a cautious approach to leverage in an uncertain environment. However, funding rates paid by longs have surged by 136.6%, indicating renewed demand for long positions and strengthening bullish sentiment among traders. Yet, the perpetual contracts CVD has dropped sharply by 278.7%, highlighting significant selling pressure and suggesting that bearish sentiment still dominates.

Options 25-Delta Skew has increased by 42.75%, with traders seeking more downside protection, clearly shifting towards a bearish outlook. Meanwhile, options open interest and the volatility spread have risen by 1.7% and 124.52% respectively, showing greater market participation and heightened expectations of future price volatility.

The MVRV of US spot ETF has decreased by 6.1%, and ETF net inflows have sharply deteriorated, indicating weakened institutional confidence. However, ETF trading volume has risen by 7.0%. On-chain activity is mixed: the number of active addresses has declined, while entity-adjusted transfer volume has increased, suggesting relatively subdued network usage, but large-scale funds are still moving actively.

Overall, as momentum, spot demand, and speculative positions weaken across the board, the Bitcoin market structure is starting to soften. Options traders are increasingly hedging against downside risks, liquidity and profitability indicators continue to cool off, and while the market structure remains relatively stable, steady liquidity and the strength of long-term holders still provide a certain degree of resilience for the market.