Glassnode: Investor panic subsides after Bitcoin stabilizes, capital starts flowing into call options

AI Summary
Glassnode's latest weekly report points out that the current market situation is similar to the early stages of the 2022 bear market, with weakening ETF demand and IBIT experiencing six consecutive weeks of outflows, totaling over $2.7 billion. Derivatives data shows that market risk appetite has decreased, with cautious sentiment in the options market and investors more inclined to sell.

According to Odaily Planet Daily, Glassnode's latest weekly report indicates that the current market situation resembles the early phase of the 2022 bear market (also known as the crypto winter). ETF demand continues to weaken, and IBIT has seen outflows for the sixth consecutive week, marking the longest streak of net outflows since its launch in January 2024. The total amount redeemed in the past five weeks has exceeded $2.7 billion.

Derivatives data further confirms the decline in risk appetite. Open interest consistently dropped from November to December, indicating lower market risk tolerance, especially after the flash crash liquidation event on October 10. Perpetual contract funding rates remained largely neutral, with only brief periods of negative values, and funding premiums have also fallen significantly. This suggests a more balanced market environment with reduced speculation.

Sentiment in the options market is cautious, with investors more inclined to sell rather than chase upside potential. Earlier this week, as Bitcoin approached $80,000, put option buying dominated. However, as the price subsequently stabilized, investor panic subsided and capital began flowing into call options.