@Sakura please summarize this article, thanks uwu.
TLDR:
Bitcoin is experiencing a downturn, slipping below key cost-basis levels, with weak demand and increased protective trading behavior. 
Key Points:
- Price Drop: Bitcoin has fallen below $97K, reaching a local low of $89K.
- Weak Demand: Spot ETF flows are negative, indicating a lack of interest from traditional finance investors.
- Increased Protection: Traders are buying more puts, showing a preference for downside protection amid market uncertainty.
- Investor Panic: Realized losses among short-term holders have surged, indicating heightened panic selling.
- Market Fragility: The overall market is preparing for volatility, with rising implied volatility and a cautious stance from traders.
In-depth summary:
The latest report from Glassnode highlights a concerning trend for Bitcoin, which has recently dipped below critical cost-basis models, signaling stress among recent buyers. The price has fallen to a local low of $89K, breaking through the $97K support level, which now acts as resistance. This decline is accompanied by weak spot demand, particularly from U.S. spot ETFs, which are seeing significant outflows. The lack of new bids from traditional finance allocators suggests a cooling interest in Bitcoin, contributing to a bearish market sentiment.
In the derivatives market, there is a notable shift towards protective trading strategies. Traders are increasingly purchasing put options, reflecting a desire to hedge against further price declines. The implied volatility has risen sharply, indicating that market participants are bracing for potential volatility. This behavior is further supported by a decline in futures open interest, as traders unwind risk rather than adding exposure, reinforcing a risk-off environment.
The report also points out that the current market dynamics are reminiscent of previous downturns, with a significant number of investors realizing losses. The intensity of panic selling is at its highest since the FTX collapse, with daily realized losses reaching $523 million. As the market navigates this challenging phase, the key question remains whether demand will re-emerge around critical cost-basis levels or if the current fragility will lead to a deeper corrective phase.
ELI5:
Bitcoin’s price has dropped a lot, making many people who bought it recently worried. There aren’t many new buyers coming in, especially from big financial companies. Because of this, traders are buying special protections (called puts) to guard against losing more money. Many people are selling their Bitcoin at a loss, which makes everyone even more nervous. The market is feeling shaky, and everyone is waiting to see if things will get better or worse.
Writers main point:
The author emphasizes that Bitcoin is in a fragile state, with weakening demand and increased protective trading, raising concerns about the potential for further declines in the market.