Crypto Weekly Recap: Bitcoin & Ethereum

This week, the crypto markets traded through a period of compression rather than conviction. Bitcoin and Ethereum both saw volatility fade as traders reduced leverage and waited for clearer macro and liquidity signals. As a result, we experienced a quiet week but with rich data for seasoned investors.

Bitcoin spent the week ranging above its short-term realized price, while Ethereum continued to lag on relative strength. According to Glassnode, long-term holder supply remained near cycle highs, with no meaningful spike in coin dormancy or exchange inflows.

Derivatives data from CME showed a gradual reduction in open interest across BTC futures, suggesting leverage was intentionally reduced rather than liquidated.

On the other hand, Ethereum network activity data from CoinMetrics showed flat but stable active addresses and transaction counts, which are consistent with consolidation conditions.

Bitcoin: Leverage Reset Without Structural Damage

This week’s Bitcoin price action wasn’t driven by panic or forced selling. Instead, it reflected a controlled leverage reset happening while spot structure remained intact.

Since Bitcoin traded in a tight range, this could signal that traders closed their positions proactively instead of being forced out. This distinction matters because risk management preserves structural support, while forced deleveraging usually breaks it.

Moreover, price volatility compressed, funding rates normalized, and open interest declined gradually. These are all signals of speculative positioning being reduced without triggering liquidation cascades.

Moreover, a Tweet by CryptoQuant shows Bitcoin’s apparent demand growth turning negative. A signal that historically reflects a slowdown in spot-driven buying pressure rather than outright selling.

Apparent demand, which measures the net balance between new supply issuance and long-term holder distribution, suggests that since early October, demand has fallen below the trend line.

Ethereum: Relative Underperformance, Not Capitulation

Ethereum underperformed Bitcoin this week, but the data doesn’t support a capitulation narrative yet. The weakness was relative and primarily reflected rotation. Also, price action remained range-bound, with no expansion in downside volatility.

Capitulation phases are typically characterized by expanding ranges, elevated volume, and sharp downside follow-through. None of these conditions were present during the week.

Also, on the network side, there were no visible stress signals. There was no spike in validator exits, no abnormal congestion events, and no indication of security concerns. These are critical filters given that capitulation isn’t confined to price alone. It tends to surface across multiple system layers.

Ethereum did not attract a lot of demand this week, but it also didn’t experience structural damage. Until a clear catalyst comes, ETH is likely to continue trading as a secondary asset sensitive to broader liquidity conditions instead of leading the market independently.

This week was defined by restraint. Bitcoin absorbed leverage reduction without losing structure, while Ethereum consolidated amid muted participation. For experienced investors, this wasn’t a week to chase momentum, but one to observe liquidity, positioning, and patience.

More Must Reads:

• Key Upcoming Event Fuels Fresh Anxiety on Bitcoin’s Future
• Ethereum Holds Key Structure as Bulls Refuse to Fold
• U.S. Senate Approves Pro-Crypto Lawyer as CFTC Chair