Glassnode Co-Founders Say Bitcoin’s Market Structure Acting as ‘Buffer’ as Solana ETF Inflows Hold Steady

Bitcoin’s recent drawdown has not broken the broader market trend, according to Glassnode co-founder Negentropic, who said Thursday that the cryptocurrency is currently benefiting from a “buffer mechanism” that is helping stabilize market conditions despite elevated volatility.In a post on X, Negentropic noted that spot Bitcoin ETFs remain net profitable, with their aggregate cost basis largely unaffected by the recent sell-off. This indicates that ETF investors, many of whom are institutional participants, have not yet capitulated despite short-term price weakness.Solana ETF Inflows Remain Steady, Altcoins Outperforming BTC and ETHWhile Bitcoin has faced sharper downward pressure, Solana ETF inflows have remained stable, according to Glassnode’s analysis. The firm noted that SOL-linked funds and several major altcoins have outperformed both BTC and ETH on a relative basis during the recent market turbulence.This divergence suggests:Steady demand for Solana-based ETFs,Stronger appetite for mid-cap altcoins,A shift in short-term trader positioning away from Bitcoin dominance.Market Cycle Structure “Remains Intact”Negentropic emphasized that the overall cyclical structure of the crypto market remains unbroken, pointing to several resilient macro and structural indicators:ETF and spot demand remain strong, even during pullbacksMacro backdrop remains neutral-to-bullishThe market has not entered a capitulation phaseLong-term trend signals are still intactHe added that although some long-term holders have begun trimming exposure, the selling does not resemble historical capitulation patterns seen during final-cycle bottoms.A Stronger Rebound Could Follow the DeclineNegentropic said the market is approaching a zone where downside exhaustion could set in. When that occurs, he believes the rebound could be stronger than the decline itself, mirroring historical recovery patterns where Bitcoin rallied sharply after volatility-driven sell-offs.