Bitcoin (BTC) entered 2026 consolidating between the low-$80,000s and mid-$90,000s following its fourth-quarter drawdown, according to Glassnode's latest market analysis.

The cryptocurrency shows improving momentum indicators and returning institutional demand through ETF inflows.

However, persistent on-chain capital outflows suggest structural demand remains subdued.

Glassnode analysts characterized the market as transitioning into a "fragile consolidation regime."

What Happened

US spot Bitcoin ETF flows reversed from a $740 million weekly outflow to a $324 million inflow.

ETF trading volume increased 40% to $14 billion.

The MVRV ratio for ETF holders reached 1.68, indicating elevated unrealized profits and potential near-term profit-taking risk.

Derivatives markets rebuilt positioning with futures open interest rising 2.5% to $30.3 billion.

Options open interest contracted 22.6% to $25.7 billion, signaling aggressive de-risking.

Network activity improved with active addresses rising 6.9% to 665,000 and transfer volume jumping 22.4% to $8.7 billion.

Read also: Starknet Restores Service After Four-Hour Network Outage

Why It Matters

Realized capital growth remained negative at -0.4%, indicating persistent net capital outflows despite improving participation metrics.

The short-term holder to long-term holder supply ratio stood at 19.3%, above historical norms.

This elevated share of price-sensitive capital increases market sensitivity to near-term volatility.

Supply in profit recovered to 68.4% from 65.3%, while realized loss-taking pressure declined sharply.

The market faces competing dynamics as institutional flows improve but structural on-chain demand stays weak.

Glassnode noted the combination leaves Bitcoin "sensitive to volatility and profit-taking risk as it attempts to rebuild higher ground."

Read next: Bitcoin Climbs To $94,000 On Venezuela Tensions Despite Trading Volume Hitting 2-Year Low