Crypto market momentum is weakening, Glassnode analysis shows

The cryptocurrency market has entered a transitional period of weakening momentum despite an increase in trading volume, according to an analysis by Glassnode. The firm noted that both futures open interest and funding rates have fallen, suggesting that investors are reducing leverage and adopting more defensive positions. On-chain data also points to growing market stress, with a decrease in active addresses and a drop in profitability. Glassnode explained that while liquidity is currently being maintained, a wait-and-see sentiment is intensifying. The firm projects that significant market movements are unlikely without new demand or external catalysts.