Glassnode: After Bitcoin stabilizes, investor panic subsides, and funds begin to flow into bullish options

Glassnode's latest weekly report points out that the current market conditions are similar to the early stages of the 2022 bear market (also known as the crypto winter). ETF demand continues to weaken, with IBIT experiencing outflows for the sixth consecutive week, setting a record for the longest streak of negative flows since its launch in January 2024, with total redemptions exceeding $2.7 billion over the past five weeks.

Derivatives data further confirms the decline in risk appetite. Open interest continues to decrease, indicating a reduced willingness to bear market risk, especially following the liquidation flash crash event on October 10. The perpetual contract funding rate remains largely neutral, only briefly dipping into negative territory, while the funding premium has also significantly retreated, suggesting a more balanced market environment with reduced speculation.

The sentiment in the options market is cautious, with investors more inclined to sell rather than chase upward potential. Earlier this week, as Bitcoin's price approached $80,000, put option buying dominated, but as the price stabilized thereafter, investor panic subsided, and funds flowed into call options.