Bitcoin Price Rebounds Above $65,000 as Institutional Demand Improves

Bitcoin's price has rebounded above $65,000 as improving on-chain activity and stronger inflows into US spot Bitcoin exchange-traded funds (ETFs) point to a stabilizing market. According to Glassnode, trading activity in the spot market remains subdued, suggesting investors have yet to regain the conviction needed for a major rally.

The blockchain analytics firm notes that spot trading volumes have fallen below $4.5 billion, reflecting weaker market participation. However, derivatives traders appear to be positioning for larger moves ahead, with Bitcoin futures Open Interest climbing to approximately $48.8 billion and options Open Interest increasing by roughly 2% to $32.6 billion.

Institutional demand is also showing signs of improvement, with US spot Bitcoin ETFs attracting $110.4 million in inflows on Monday. Glassnode believes the improving flows indicate institutional interest is stabilizing, although speculative buying remains measured rather than aggressive.