#OnChainInsights
Bitcoin is trading in the $93k-$97k range, leading to a wider digital asset market cooldown. Capital inflows are weakening, and derivatives activity is declining. Short-term holder accumulation patterns somewhat resemble May 2021, which was a relatively challenging set of market conditions.
Executive Summary
After Bitcoin’s second attempt to break above $105k in late January, the market has entered a contraction phase, with monthly price momentum sharply declining across major assets.
Bitcoin has held relatively steady, while Ethereum, Solana, and Memecoins have faced much deeper corrections, reflecting a shifting appetite for risk.
Solana has emerged as a market leader in capital inflows over the past two years, in contrast to Ethereum, which has comparatively struggled to attract sustained demand.
However, this week, all digital assets aside from Bitcoin have seen a dramatic decline in capital flows, with Solana, and its associated memecoin ecosystem taking a relatively large hit.
Perpetual futures open interest has declined across Bitcoin (-11.1%), Ethereum (-23.8%), Solana (-6.2%), and Memecoins Index (-52.1%), reflecting a diminished appetite for leveraged speculation.
