Opinion: Bitcoin's fragile rebound is built on shrinking liquidity; large holders are selling.

According to CryptoQuant and Glassnode, Bitcoin (BTC) recently rose to over $90,500, but this rebound was affected by increased realized losses and weak demand.

A CryptoQuant report shows that investors are exiting positions at a loss, a pattern that typically signals a depletion of market momentum. Large deposits from major holders are driving up the inflow of BTC and ETH into exchanges, with the average deposit value surging, indicating that whales are transferring tokens to exchanges for sale. The average deposit amount for Ethereum (ETH) has also risen to its highest level in nearly three years.

In its weekly report, Glassnode noted that realized losses have climbed to levels comparable to previous cycle lows, and the profit/loss ratio for short-term holders has collapsed, highlighting insufficient remaining buying momentum. Combined data suggests that rising prices may be masking deeper liquidity pressures.

Analysts believe that any further gains are likely temporary and not a market turning point until liquidity recovers and demand strengthens. Currently, BTC is holding above $90,000, and ETH is trading around $2,900. (CoinDesk)