Bitcoin has stabilized around $70,000 following a sharp sell-off that saw prices dip to $67,000. Despite improved funding flows and reduced selling pressure, spot trading volume remains low, indicating weak market confidence. The perpetual contract funding rate remains negative, reflecting bearish sentiment in the derivatives market. U.S. spot exchange-traded fund (ETF) flows have turned positive after a period of net outflows, suggesting a cautious return of institutional demand. However, the scale of inflows is limited, and the market's recovery is still in its early stages. The options market shows a preference for downside protection, with implied volatility remaining range-bound, indicating a cautious outlook among traders. Overall, while Bitcoin's market structure is showing signs of improvement, a sustained recovery will require stronger demand and increased spot trading activity. Until then, the market remains in a rebalancing phase, sensitive to changes in derivatives funding flows and liquidity conditions.