PANews reported on August 19th that according to glassnode monitoring, the Bitcoin price rebounded to $121,000 after falling below $114,000 last week, with on-chain activity and derivatives market sentiment improving. However, declining spot trading volume and high profitability suggest caution in the market.

In the futures market, open interest briefly reached a statistically extreme high before deleveraging. Funding rates indicate continued demand for long positions, but confidence remains fragile. ETF inflows were strong, exceeding $880 million weekly, demonstrating resilient institutional demand. However, the sustainability of these inflows amidst price volatility remains to be seen. On-chain data suggests a slowdown in user activity and fees, but a surge in adjusted transfer volume suggests capital flows may be correlated with market volatility.

The current market profitability is high, with a 96% supply profitability ratio, but it's not yet extremely optimistic, and market sentiment remains cautious. Overall, the market has retreated from its recent high to around $114,000. ETF inflows and active derivatives activity contrast with weak on-chain signals. Future trends may depend on whether institutional capital flows and buyer confidence can recover.