Bitcoin’s record-breaking rally is losing momentum as new capital inflows slow, according to on-chain analytics firm Glassnode.
After reaching an all-time high of $124,400 last week, the cryptocurrency has fallen 9.2 per cent to $112,900, with weaker realized cap growth pointing to fading demand at elevated levels.
Glassnode data shows realized cap expansion, a measure of fresh inflows, has slowed to six per cent per month compared with 13 per cent monthly growth when Bitcoin surged past $100,000 late last year. Profit-taking has also moderated, with muted realized gains during the latest peak suggesting the market is struggling to sustain upward momentum.
Futures activity remains high, but signs of cooling are emerging. Open interest currently stands at $67 billion, although $2.3 billion in positions were closed during the recent correction, one of the sharpest pullbacks on record. Liquidation volumes stayed relatively modest, indicating most traders exited positions voluntarily rather than being forced out.
Altcoins are drawing more attention. Glassnode noted that combined open interest across Ethereum, Solana, XRP, and Dogecoin climbed to $60.2 billion before retreating by $2.6 billion, marking the tenth-largest single-day decline on record. Ethereum is leading the pack, with open interest dominance at 43.3 per cent, the fourth highest ever recorded, while perpetual futures volumes surged to 67 per cent of the market, setting a new high.
According to Glassnode analysts, the cycle is moving into a late phase as long-term holders take profits at levels similar to previous euphoric peaks. With Bitcoin inflows slowing and speculative leverage rotating into altcoins, the firm said the market is now at a crossroads as investors weigh whether the cycle has already reached its climax.
Despite the pullback, some traders remain optimistic. A bullish hammer candle on Bitcoin’s weekly chart is being viewed as a potential signal of reversal. Glassnode founders Jan Happel and Yana Allemann, known as Negentropic, reinforced the sentiment, stating that “Bitcoin still looks like it is about to blow higher.”
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