The crypto market’s evolving landscape, marked by growing institutional participation, has led to a dynamic interplay between macroeconomic narratives and on-chain activity, with price movements increasingly influenced by long-term positioning and funding flows rather than short-term sentiment.
This year, Sygnum Bank’s Chief Investment Officer, Fabian Dori, highlighted how institutional investors are recalibrating strategies amid shifting market conditions, focusing on metrics such as funding rates, on-chain metrics, and macroeconomic indicators over transient news cycles.
A notable development this year saw Sygnum Bank sell 32 Bitcoin for the first time since 2022, reflecting a strategic shift toward liquidity management amid heightened volatility. Concurrently, spot Bitcoin exchange-traded funds faced their worst monthly outflows on record, underscoring ongoing challenges in attracting retail and institutional capital.
Long-term holders, however, have demonstrated resilience, increasing Bitcoin purchases during periods of market weakness, a trend analysts attribute to growing confidence in the asset’s long-term value proposition.
Bitcoin’s funding rate for perpetual futures contracts has remained negative for the longest stretch since the collapse of FTX in 2022, indicating sustained bearish sentiment among leveraged traders and a potential shift in risk appetite across derivatives markets.
Written by Oliver Grant
Markets Desk
