Key highlights:
- Bitcoin has spent five months below key cost-basis metrics, a condition that has historically preceded cyclical bottoms
- Long-term holder capitulation has reached its highest level since December 2022, while ETF outflows suggest demand has yet to recover
- Bitcoin price is inching toward $65K, but Glassnode warns investors to proceed with caution
A new report by on-chain analytics firm Glassnode has revealed that Bitcoin is in “deep value territory,” despite a price rebound over the last week. Glassnode analysts warn that investors should not mistake improving conditions for a confirmed recovery, as several key indicators have yet to turn bullish.
Bottom building in progress, says Glassnode
Per the
“The market presents a consistent picture of a bear market in its later stages,” reads the report. “On-chain, the five-month deep value regime and rising long-term holder capitulation at $280M per day confirm that supply redistribution is underway.”
Institutional demand remains subdued
The Glassnode report also pointed to continued weakness in institutional demand through US spot Bitcoin ETFs. Bitcoin spot ETFs set a new record for outflows in June before staging a recovery, but ETF flows remain negative on a 30-day basis.
Trading activity paints a similar picture, with average daily spot Bitcoin ETF trading volume ranging between 650 million and $950 million, an 80% decline from the 2025 peak of $4.4 billion. Glassnode’s analyst noted that a sustained increase in trading activity alongside stabilizing ETF flows will indicate renewed institutional conviction.
However, derivatives traders have started positioning for a recovery. The options put-to-call ratio has fallen to its lowest level of 2026, indicating increased demand for call options relative to downside protection.
Meanwhile, Bitcoin’s recovery screeched to a halt after US President Donald Trump declared that the Iran ceasefire was over. At press time, the leading cryptocurrency is trading at 64,354 with trading volumes up by 4% over the last day.
Source:: Glassnode Says Bitcoin Remains in Deep Value Territory As Bottoming Signals Build