Bitcoin currently holds a defensive stance according to the latest Glassnode review, as evidenced by declining momentum and subdued trading activity. Short-term holders are approaching their break-even point, which could signify a potential turning point in market behavior. The report also reveals reduced turnover in U.S. spot Bitcoin ETFs while showing that derivative markets reflect a more cautious approach with increased demand for downside protection. A slowdown in capital flow further supports this defensive stance. 392 million dollars in net inflows were recorded for US-based Bitcoin ETFs this month, coupled with lower turnover and eased valuation metrics. Derivatives are displaying reduced risk appetite with waning open interest across futures, fading funding rates, and a marginal improvement in perpetual CVD. While options show a similar trend of declining open interest, narrowing volatility differentials, and a surge in 25-delta skew, indicating increased demand for downside protection. On-chain activity has remained muted, with moderate levels of active addresses and fees, alongside a rise in transfer volume driven by large wallets rather than broad retail use.