Sticky inflation, shifting expectations around central bank rate cuts and periodic volatility in global equities have weighed on risk appetite, while ongoing regulatory scrutiny in the U.S. and abroad has added another layer of uncertainty.

At the same time, conflicts in Eastern Europe and the Middle East and trade frictions between major economies have contributed to bouts of risk-off sentiment, limiting sustained upside across digital assets.

At the same time, the analysts noted that momentum and profitability indicators are consistent with a corrective period, one that may be laying the groundwork for a more stable market structure.

A notable divergence is emerging between price and network activity. The analysts pointed to sustained usage across Ethereum and Solana, suggesting that demand at the protocol level remains intact even as valuations lag.

Taken together, these signals reflect a market still in recovery, but with structural improvements underway that may not yet be fully reflected in prices, the report said.

Read more: Bitcoin faces near-term pressure as liquidity tightens, Hilbert Group CIO says

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Graphs, discussion (geralt/Pixabay)

Research firm 10x says the negative funding rates reflect structural hedging by institutions, not a broad bearish play.

What to know:

  • BTC perpetual futures continue to see negative funding rates despite the token’s 14% climb this month, its strongest monthly gain since April 2025.
  • Research firm 10x says the negative funding rates reflect structural hedging by institutions, not a broad bearish shift, with hedge funds shorting futures to manage other bets.

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