Bitcoin Price Drop Below $70,000 Apparently Driven By Lack Of Interest, Glassnode Data Shows
23 Maio 2024 - 1:00PM
NEWSBTC
On-chain analytics platform Glassnode has provided insights into
why the Bitcoin price recently dropped below $70,000. The platform
suggested that the flagship isn’t yet seeing enough demand, which
could send its price to new highs. Demand For Bitcoin Is
Still Modest In one of its latest market reports, Glassnode
mentioned that “the rate at which new capital is flowing into the
Bitcoin network has slowed down considerably from its peak.” They
made this assertion based on the Realized Cap metric, which
measures the value of each Bitcoin based on the last time it was
traded. Glassnode claimed that Bitcoin’s Realized Cap is currently
at $574 billion. Related Reading: XRP Price Nears Major
Converging Point: Analyst Predicts 3,600% Jump To $20 The platform
further revealed that the injection of liquidity into Bitcoin has
cooled off since the flagship crypto hit an all-time high (ATH) of
$73,750. This is in stark contrast to the period before Bitcoin hit
that ATH, with Glassnode noting that the flows into Bitcoin back
then were “extremely sharp, culminating at a value of $3.38 billion
daily.” Meanwhile, Glassnode stated that the Realized Cap “remains
in positive profit-dominated territory and is returning towards an
equilibrium position.” However, they noted that Bitcoin’s modest
demand was still able to spark this recent rally thanks to the
“declining sell-side headwinds from mature investors.” Basically,
Glassnode suggested that things were looking up for Bitcoin but
that it could be way better if there were more capital inflows.
There could indeed be an increase in capital inflows soon enough,
considering that the Spot Bitcoin ETFs have broken their streak of
net outflows and are once again recording impressive net inflows
into their funds. Data from Farside Investors shows that
these funds have already seen almost $700 million in net inflows
this week. Specifically, these Bitcoin ETFs recorded a net inflow
of $305.7 million on May 21 alone. That day was also BlackRock’s
iShares Bitcoin Trust (IBIT) most profitable day yet, with the fund
taking in $290 million. Some Positive Key Takeaways Glassnode
also assessed some other vital on-chain metrics, which provided
some positives for Bitcoin’s future trajectory. The platform noted
that there has been a “large decline” in Bitcoin’s Sell-Side Risk
Ratio, which “suggests the market has found a degree of equilibrium
over the course of this correction.” To assess market volatility,
they also measured the percent range between the highest and lowest
price ticks over the last 60 days. They concluded that “volatility
continues to compress to levels typically seen after lengthy
consolidations and prior to large market moves.” Related Reading:
Bitcoin Whales Spend $6.3 Billion In One Day As Historic BTC Buy
Signal Appears Meanwhile, Glasnode revealed that 2.14M BTC out of
the Short-term holder (STH) supply, currently at 3.36M BTC, fell
into an unrealized loss following the recent market correction.
They claim that this suggests that many of the BTC held by this
category of investors are held at an unrealized loss, which reduces
the risk of top-heaviness developing. Featured image created with
Dall.E, chart from Tradingview.com
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