According to Glassnode, the current crypto market structure closely resembles May 2022 — the period when the market was hit by the collapse of the Terra/LUNA ecosystem.

At a Bitcoin price of $70,000, unrealized losses account for approximately 16% of total market capitalization, indicating growing stress among market participants and reduced tolerance for downside volatility.

Adding to the cautious outlook, CryptoQuant CEO Ki Young Ju stated that he does not see strong potential for a Bitcoin price pump under current conditions. The market continues to face excessive selling pressure, and even $308 billion in capital inflows during 2025 failed to resolve the liquidity challenges now affecting DAT liquidity providers.

Together, these signals suggest a fragile market environment, where liquidity constraints, seller dominance, and on-chain stress metrics may continue to cap upside momentum in the near term.

For traders, this underscores the importance of defensive positioning, strict risk management, and close monitoring of on-chain indicators.

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