Crypto market remains cautious across spot, derivatives and institutional demand

The crypto market is continuing to trade in a range as liquidity on major exchanges has declined and aggressive selling pressure has eased, according to a Glassnode report. Glassnode said caution also persisted in derivatives markets. In the perpetual futures market, buying activity and speculative demand slowed, and while total open interest rose slightly, funding rates for long positions fell sharply. By contrast, options open interest increased and volatility premiums widened, suggesting investors are preparing for the possibility of greater volatility ahead. Institutional demand also weakened somewhat, Glassnode said. While Bitcoin continues to draw firm support from long-term holders, the market is in a transitional phase marked by caution across spot, derivatives and institutional investment, according to the report.