Dollar Weakness Lifts Glassnode Composite to 'Defensive' Reading

Glassnode's Market Compass Composite has increased to 25/100, marking a significant improvement from last month and the week prior. This uptick is largely attributed to the softening of the U.S. dollar, which has stabilized risk assets, including Bitcoin.

The dollar's decline below its 200-day moving average has contributed to the Composite's increase. According to Glassnode, macro conditions are now at 23, a notable rise from 13 in the previous month. This trend aligns with broader market trends reported earlier this year, where the dollar gained 1.1% in Q1 2026 after a steep 7.4% depreciation in 2025.

The spot Bitcoin market remains stable, with prices hovering near $63,900 and a healthy premium over the average cost basis of $52,800. Realized profit-and-loss is slightly positive at 1.05, indicating stability, while option-implied volatility has ticked up to 36 after hitting a two-year low.

The U.S. spot Bitcoin ETFs continue to see robust inflows, averaging $95 million in net daily creations over the past week. This passive demand has helped sustain market sentiment, with 43% of recent buyers now in profit despite a slight dip in spot prices.