Spot market conditions for Bitcoin are showing early signs of improvement as trading volumes raise and selling pressure declines, according to analysts at Glassnode.
There was a “slight” raise in Bitcoin (BTC) spot trading volume “while the net imbalance between buying and selling exceeded the upper statistical limit” reported Glassnode on Monday.
This signals a “marked reduction in selling pressure”, but despite this, demand in the spot market “remains fragile and uneven”, he added.
Bitcoin has fallen almost 3% from a weekend high of $95,450 to trade at around $92,550 at the time of writing, as markets continue to digest the fallout from the latest escalation of the US-EU trade war.
Since the beginning of the year, the value of assets has been growing by 6%.
“Overall, Bitcoin remains in consolidation, but internal conditions are improving,” Glassnode said, adding that markets are gradually recovering.
“While a defensive position remains, strengthening buy-side momentum and renewed institutional interest suggest a gradual shift towards a more constructive market structure.”
Bitcoin treated as wallet security
Gracie Lin, CEO of OKX Singapore, told Cointelegraph on Tuesday that the report suggests the market has absorbed most of the profit-taking in behind schedule 2025 and that sell-side pressure is easing.
“Long-term holders appear less willing to sell on each rally, while ETF flows continue to show buy-side institutions withdrawing,” she said.
“New tariff headlines, softer growth signals in parts of APAC and record gold prices in the backdrop strengthen the case for Bitcoin to be treated less as a short-term trade and more as a portfolio hedge – even if volatility remains a feature of the asset.”
Related: Bitcoin OI futures bounce 13% as analysts note cautious return of risk appetite
Network expansion and degenerating liquidity are harbingers of growth
Swissblock analysts say the decline in Bitcoin network development and recent liquidity drain are reminiscent of conditions last seen in 2022.
The network’s similar level at the time “triggered a phase of BTC consolidation as network growth began to recover even as liquidity remained weak and bottomed out,” they added.
“History shows that the subsequent rise in both indicators contributed to the explosive bull market,” Swissblock said.
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