Glassnode: Bitcoin Spot and Perpetual Contract Selling Pressure Surges, Options Market Shifts to Bearish Protection

On May 19th, Glassnode reported that Bitcoin’s various derivatives markets are sending conflicting signals, pointing to an overall weakening market structure. A clear shift toward selling pressure has emerged, with the Spot Cumulative Volume Delta (CVD) crashing by 848.7%. Even so, spot trading volume rose 4.2%, signaling increased activity—though this uptick is likely driven more by general trading interest than actual bullish sentiment. Open Interest ticked down 2.9%, reflecting traders’ cautious stance on leverage amid today’s uncertain market conditions. That said, the funding rate for long positions spiked a massive 136.6%, pointing to a revival in demand for long bets and growing bullish sentiment among traders. But the Perpetual Contract CVD took a nosedive of 278.7%, underscoring heavy selling pressure and confirming that bearish sentiment remains dominant. The 25-delta skew for options climbed 42.75%, as traders pile into more downside protection—a clear sign the market is shifting sharply toward bearishness. Meanwhile, both options Open Interest and volatility skew rose 1.7% and 124.52% respectively, signaling expanded market participation and heightened expectations for upcoming price swings. The U.S. spot Bitcoin ETF’s MVRV ratio dropped 6.1%, paired with a sharp deterioration in ETF net flows—pointing to waning institutional confidence. Yet, ETF trading volume climbed 7.0%. On-chain activity paints a mixed picture: the count of active addresses fell, while adjusted on-chain volume rose, showing subdued network usage overall, though large-scale fund transfers are still underway. All in all, with momentum, spot demand, and speculative positions all showing signs of cooling, Bitcoin’s market structure is starting to soften. Option traders are ramping up hedges against downside risks, liquidity and profitability metrics continue to decline, and while the overall market structure remains relatively steady, consistent liquidity plus the strength of long-term holders is still lending the market some resilience.