Bitcoin and its ETFs: The market maintains its mechanical cushioning as capital continues to flow

A co-founder of Glassnode recently provided a detailed analysis of the current bitcoin situation, rejecting the idea that we are facing a narrative shift. His diagnosis points more towards a phenomenon of “mechanical cushioning” that the market is experiencing at the moment.

Capital flows in ETFs remain positive

Despite recent turbulence, bitcoin ETFs continue to record significant net inflows, indicating that institutional confidence remains intact. The market’s cost basis has not undergone any relevant changes, a detail that becomes important when assessing the health of the current cycle. Although some long-term investors have decided to take profits through selective sales, the overall flow still points towards accumulation.

Altcoins show relative strength

Capital inflow into Solana ETFs remains stable, while altcoins in general are demonstrating a more resilient behavior compared to bitcoin and ethereum. This differentiated performance should not be interpreted as a bullish signal for the altcoin market, but rather as a temporary reconfiguration of investment flows.

The cycle structure remains intact

The analysis emphasizes that the overall structure of the bitcoin cycle remains solid. Sustained demand for ETFs and spot products signals a constant risk appetite, while the macroeconomic outlook remains fundamentally neutral with a slight tilt towards optimism.

The market has not given way, the trend has not broken its critical levels, and when the downward pressure finally dissipates, the rebound potential could significantly surpass the magnitude of the previous fall.