TronWeekly

Crypto World News

You are here: Home / Archives for glassnode

glassnode

Bitcoin Market Remains Constrained In Tight Trading Range Despite Temporary Price High

by

Bitcoin (BTC) reached a temporary yearly price high of $31.7k, but the overall market remains stagnant within an exceptionally narrow trading range. Various metrics indicate a slow and steady capital inflow, reminiscent of the choppy market conditions witnessed in 2016 and 2019-2020.

The latest Week On-Chain Glassnode report sheds light on the current state of the market. Despite Bitcoin’s brief surge, the market has fallen into tranquility, with the Bollinger Bands compressed to a mere 4.2% price range.

The realized cap, a critical on-chain metric reflecting the cumulative sum of all discovered profit and loss events, hovers just below $400B. This suggests a gradual influx of capital into digital assets, primarily driven by BTC and ETH, the two significant assets in the market.

image 50

While profit dominance remains intact, the magnitude of USD value locked in is nearing cycle lows, indicating that investors hesitate to part with their holdings. This market sentiment mirrors the choppy conditions observed in 2016 and 2019-2020.

Despite­ the lack of volatility, digital assets continue to attract a ste­ady stream of capital. The Realize­d Cap, a reliable indicator that shows true capital flows into Bitcoin, re­veals a consistent influx of funds throughout 2023. This increase­ in demand is reflecte­d in the higher prices at which coins are­ exchanged.

Interestingly, the net realized profit/loss (NRPL) metric suggests a sustained profit regime 2023, with approximately $270M per day in net inflows. This level is comparable to the first half of 2019 and late 2020 but significantly smaller than the extraordinary peaks in the 2021 bull market.

image 51

Comparing Bitcoin And Ethereum Realized Caps

Furthermore, the comparison between Bitcoin and Ethereum Realized Caps and the supply of top stablecoins reveals that most capital flows are directed towards BTC and ETH, with a positive net inflow of $21.9B and $18.0B, respectively. 

In contrast, major digital assets have­ witnessed a significant increase­ in popularity, resulting in a considerable de­crease of -$10.4B in the ove­rall supply of stablecoins. It highlights the prevailing pre­ference for major digital asse­ts over stablecoin investme­nts.

Analyzing exchange inflow volumes reveals that Short-Term Holders (STH) are the primary active entities in the market, accounting for 78% of the total daily inflow of 39.6k BTC. As the STH cohort holds over 88% of their balance in profit, they are increasingly inclined to spend and take profits as prices rise.

image 52

While Long-Term Holders (LTHs) have a comparatively lower percentage of their balance in profit, at just over 73%, it indicates that a significant portion of LTH supply was acquired at prices above $30k within the 2021-2022 cycle.

image 53

Related Reading | Crypto Rules: SEC and CFTC Explore Collaboration

Bitcoin’s Resilience In Action: Bulls Record The Highest “Buy” Level At $30.2K

by

Bitcoin’s bullish momentum might have hit a roadblock at $30k, but recent data bears testament that the dominant coin continues to command a significant amount of buyer interest. On-chain market intelligence portal Glassnode showed that at the current price level, a record 3.8% of the Bitcoin supply last changed hands.

Analyzing the UTXO element which tracks unspent transaction outputs, it was found that $30,200 is the price at which the most significant number was created. This was greater than the area around the 2022 post-FTX bottom, which is marked by $16,500, suggesting that new owners might be more steadfast.

Therefore, a potential rally shouldn’t be surprising for those who are closely tracking. Approximately 7.77 million bitcoins are currently off the market due to being lost or held by the most resolute investors, an expert wrote. This indicates a significant portion of Bitcoin is in strong hands, which could further drive its value in the future.

Overexposure to Bitcoin can be debilitating

The analyst tweets that Bitcoin owners are showing “Diamond Hands,” a term used for those crypto traders who decide to hold onto their holdings despite the current market conditions. However, he has a word of caution for newbie investors who might use this trend to rush and acquire as much BTC as possible.

It’s not about rushing to acquire as much BTC as possible, but rather about gradual and mindful accumulation. Even if the coin only reaches its ATH again, that’s still a significant return on investment. However, it’s crucial to maintain a humble mindset, assuming it may not break the ATH, to mitigate unnecessary risk. It’s not a necessity to sell all your belongings for Bitcoin.

In the long run, a modest strategy can be more advantageous. Overexposure to BTC can be debilitating; gradually increasing one’s exposure is the better way to prepare for a long-term commitment, he added.

Last week, Bitcoins seized by the US Department of Justice were seen transferring more than 9K BTC worth $300 million from two addresses connected to the Silk Road. The U.S. government sold 9,800 Bitcoin on March 14 and plans to offload an additional 41,500 BTC linked to Silk Road in four batches over the course of a year.

Bitcoin’s Sideways Trading Signals Potential Bullish Momentum

by

On July 6th, Glassnode’s co-founder, Negentropic, took to Twitter to reveal an intriguing analysis of the current state of Bitcoin. According to his unique perspective, Bitcoin’s sideways trading has set the stage for an impending bullish momentum, igniting excitement among crypto enthusiasts.

The co-founder highlighted the cryptocurrency’s range-bound trading between $31.25k and $29.64k as a crucial factor contributing to the consolidation period. 

This stabilization phase serves as a solid foundation for Bitcoin to regain its bullish momentum, allowing potential upward movement in the market. 

Notably, the Swissblock Risk Signal has remained stable at 0, further endorsing the possibility of an upward trajectory for the popular digital asset.

image 16

Drawing insightful conclusions from his analysis, the co-founder confidently predicted that Bitcoin is likely to break above the $31.25k resistance level. 

This breakthrough would provide a strong foundation for buyers, enabling them to set their sights on the formidable $33k and $34.85k resistance levels. 

This bullish sentiment opens up exciting opportunities for investors eager to ride the wave of Bitcoin’s potential upswing.

Even in the scenario where support at $29.64k falters and breaks, the co-founders remain unwaveringly bullish, foreseeing a viable path toward the 50% retracement level near $28.23k. 

It suggests that despite any temporary setbacks, Bitcoin’s overall trajectory remains positive, presenting an enticing opportunity for those looking to accumulate more BTC during this temporary pullback.

Bitcoin’s Price Movement & Retracement Levels

Whereas, Glassnode also shared their insights on BTC’s price movement. Via tweet, they revealed an interesting pattern that has emerged when measuring its spot price against its all-time high (ATH) from November 2021. 

The data showcased consistent fluctuations within a well-defined local range, specifically oscillating between the -50% and -61.8% retracement levels.

image 17

To provide a clearer picture, Glassnode elaborated on the corresponding price points of these retracement levels. At the -50.0% retracement, Bitcoin’s spot price reached $34.3K, while at the -61.8% retracement, it dipped further to $26.2K. 

This analysis provides investors with valuable reference points to gauge Bitcoin’s price movement and potential support levels as it navigates its market dynamics.

However, Glassnode’s data-driven analysis and observations serve as a compass for market participants, allowing them to make informed decisions amidst the ever-changing landscape of cryptocurrencies.

Related Reading | Kraken Boss Jesse Powell Now Has the FBI Knocking At His Door

Bitcoin Rally & Wall Street Exchange: Peter Schiff Raises Doubts

by

Renowned gold bug and vocal Bitcoin critic Peter Schiff has expressed skepticism regarding the sustainability of BTC’s recent rally, propelling the cryptocurrency to a staggering $28,000 market capitalization.

Schiff took to Twitter to voice his doubts, attributing the surge to news of Wall Street firms developing an exchange that enables speculators to trade crypto through their brokerage accounts. 

In his tweet, Schiff questioned the long-term demand for this exchange, suggesting that providing more avenues for Bitcoin speculation does not inherently increase its value.

The tweet ignited a lively response from the crypto community. One user drew parallels with the success of Gold ETFs, predicting that Bitcoin ETFs would have a similar positive impact on the cryptocurrency. 

Another user expressed concerns about older generations placing trust in institutions that may not have their best interests at heart, suggesting that such exchanges could compromise Bitcoin’s sovereign properties by preventing native BTC withdrawals and potentially exposing it to government seizure.

Critics further highlighted the irony of Schiff’s involvement in launching a product on an asset he consistently denounces, emphasizing the need for integrity. 

They predicted that the majority would eventually see through his actions while acknowledging his valuable insights into the failures of traditional finance.

Glassnode Analyst Highlights Bitcoin’s Dominance

Meanwhile, a tweet from a leading on-chain analyst at Glassnode indicated that Bitcoin still commands more value than over 51% of the wider crypto industry, even after a decade of supposed “innovation” and financial engineering. 

This analysis encompassed stablecoins and overinflated long-tail assets, highlighting Bitcoin’s dominance and dismissing any close competition.

The analyst, who had drawn lines 2018 predicting the washout of the ICO wave, observed that this ongoing cycle’s depth would provide crucial insights. 

If BTC’s market dominance were to return to around 70% or higher, it would be challenging to argue that the broader crypto market adds substantial value beyond speculative gambling. 

image 65 2

With five additional years for coin architects to create valuable offerings, it is hoped that some projects will prove their worth in due course.

Nevertheless, as the Bitcoin rally continues to capture attention, debates surrounding its long-term prospects persist. Investors and analysts closely monitor developments, awaiting further insights into the future trajectory of the world’s largest cryptocurrency.

Related Reading | Bitcoin Dominance Soars As Traders Seek Safety In Bear Market

Ethereum Addresses In Loss Reach Record High Amid Market Volatility

by

Ethereum addresses experiencing losses have peaked, reaching 43,815,911, according to data from the analytical platform Glassnode. This figure represents the highest number observed since January, indicating a significant downturn for Ethereum investors.

The surge in ETH addresses facing losses suggests heightened market volatility or a downward trend in ETH’s price, as observed during the recent market collapse. This trend can profoundly impact investor sentiment and increase selling pressure. Investors may choose to liquidate their holdings to minimize losses or secure profits.

Data from IntoTheBlock highlights that a substantial amount of ETH in circulation is currently at a loss compared to their acquisition values on-chain. Approximately 65.11 million ETH, which accounts for 53.49% of the circulating supply, is facing losses. This data underscores the widespread impact of the current market conditions on ETH investors.

photo 2023 06 15 14 18 23
Source: IntoTheBlock

Ethereum’s Whale Addresses Hold Record-Breaking Amounts

On June 5, behavior analytics resource, Santiment revealed that much of ETH is moving into self-custody and decentralized finance platforms. The largest whale addresses on the network have absorbed most of these tokens. The ten most significant non-exchange addresses hold an all-time high of 31.8 million ETH. This concentration of ETH holdings in the hands of a few large entities signals a strong belief in the long-term potential of the cryptocurrency.

Yesterday, ETH dropped to a low of $1,630, marking its lowest value since March 16. Despite an attempt to recover, the asset closed the day with a significant loss of 5.12%. This represents Ethereum’s largest intraday loss in nearly a month. Currently, trading in the $1,640 zone, ETH leaves several addresses at a loss.

ETHUSDT 2023 06 15 17 52 01
Source: Tradingview.com

Over the past 24 hours, Ethereum has seen a 6.7% decline, enduring three consecutive losing sessions. If the asset closes negatively today, it will sustain the ongoing losing streak. At the time of writing, Ethereum is changing hands at $1,629, indicating a challenging period for investors.

As Ethereum addresses loss reach a record high and market volatility persists, the future trajectory of the cryptocurrency remains uncertain. Investors closely monitor the need for any signs of recovery or further decline in the value of Ethereum.

Related Reading: |Ethereum Controversy: Unsealed Hinman Documents Shed Light On ETH Classification

Balancing Act: Bitcoin Investors Navigate Market Volatility with Minimal Losses

by

In a recent tweet, renowned cryptocurrency data provider Glassnode shared an intriguing insight into the current state of the Bitcoin market. Despite witnessing some ups and downs in its spot price, Bitcoin investors have reportedly experienced relatively minimal losses. 

The data reveals that these realized losses amount to a modest $91.3 million, a far cry from the pinnacle of the previous market cycle, which saw losses reaching a staggering $3.16 billion.

This revelation suggests that a significant number of Bitcoin transactions took place near the prevailing spot price, showcasing the active engagement of market participants. 

To further dissect the data, the realized losses can be categorized into two distinct components: Long-Term and Short-Term. Interestingly, both groups contributed equally to the overall losses, resulting in a perfectly balanced 50/50 dominance split.

The Long-Term component accounted for losses worth $45.8 million, while the Short-Term cohort closely followed with realized losses totaling $45.5 million. 

image 54 1

This parity between the two groups emphasizes the diverse profiles of Bitcoin investors, as both long-term holders and short-term traders appear to be equally affected by recent market fluctuations.

However, Glassnode’s insightful analysis sheds light on the resilience of Bitcoin investors and their ability to navigate the volatility of the market. 

Despite the recent price swings, the overall magnitude of losses remains relatively marginal, indicating a certain level of stability within the Bitcoin ecosystem. 

Bitcoin Price Analysis

According to the latest data from CoinMarketcap, BTC is currently trading at $24,916.88, showcasing a bearish downside ride of approximately 4.13% within the past 24 hours. The weekly chart displays a noteworthy decline of 5.45%, signifying a touch of market volatility.

BTC 1D graph coinmarketcap 4
Source: CoinMarketcap

Drawing attention to BTC’s trading volume, it has observed a notable increase of 65.71% to a staggering $17,508,810,578. The market capitalization has experienced a decrease of 3.96%.

In a recent tweet, Philip Swift, the Founder of lookintobitcoin.com, stated that the Bitcoin bull market is currently on hold until the price manages to surpass the 200-week moving average (200WMA) value, which currently stands at $26,465 and continues to rise. 

image 54 2

Swift’s observation suggests that the market momentum is currently subdued, and a significant breakthrough above the 200WMA is necessary to reignite the bullish sentiment.

Related Reading | InQubeta and AltSignals Represent AI’s Potential, but Which Is the Best Crypto to Invest In?

Bitcoin Funding Rates Surge As Liquidity & Market Makers Take A Hit

by

Recently, Glassnode’s Lead On-chain Analyst took to Twitter to unveil a fascinating development in the world of Bitcoin. The analyst’s tweet revealed that the funding rates in Bitcoin perpetual swap markets were now generating a staggering 6% annualized yield. 

This revelation has sparked considerable excitement among traders, as it has been quite some time since futures traders have been able to generate higher yields compared to short-dated treasury bills.

The analyst speculated that this phenomenon could be attributed to the recent macro pullback in liquidity and market makers. These conditions have seemingly created an environment conducive to a return to a more natural state of play in the market. 

It is important to note that BTC perpetual swaps, being a riskier and more complex position, should logically yield more than T-bills. This suggests that the increased yield is not merely a speculative premium but rather a reflection of the asset’s inherent risk.

The analyst further highlighted that despite the increase in yield, open interest remains relatively low, and volumes are experiencing cyclically low levels. These factors provide additional evidence that the current situation is not driven by speculative fervor. 

Bitcoin Dominance Rising

Moreover, it is worth noting that Bitcoin is making a comeback in terms of dominance when comparing open interest and volume with Ethereum. Bitcoin’s dominance in the futures market now stands at an impressive 65% and is steadily rising. 

image 101 1

This indicates that money and liquidity are gravitating back towards the stability and liquidity that Bitcoin offers, causing a concentration of market activity around the renowned orange coin.

These revelations have piqued the curiosity of investors and market enthusiasts as the cryptocurrency landscape continues to evolve. With Bitcoin’s funding rates yielding such attractive returns, traders are closely monitoring the situation to gauge the potential long-term implications. 

However, with shifting liquidity dynamics, the cryptocurrency market is striving to find a balance, and the spotlight is firmly on Bitcoin and its pivotal role in shaping the landscape of digital finance.

Related Reading | Shiba Inu Investor’s Windfall: $30k Blossoms into a Whopping $450K with Early Bets

Ethereum Whales Soars With 30.07M ETH Holdings While Exchanges Hit Lowest Levels 

by

In a recent tweet by analytics platform IntoTheBlock, it was revealed that Ethereum whales are making quite a splash in the crypto waters! These giant holders of Ethereum have witnessed a significant surge in their holdings, causing quite a stir among the crypto community. 

The report indicates that these whales now boast a whopping 30.07 million ETH, which marks a considerable leap from their previous holdings of 26.56 million ETH recorded earlier in 2023.

The surge in Ethereum holdings by these prominent addresses, which command over 0.1% of the total supply, strongly suggests an ongoing accumulation trend. This news has intrigued many analysts and investors, pondering the possible implications for the future of Ethereum and its market dynamics.

However, it remains to be seen how these accumulating Ethereum whales will impact the overall market sentiment and price movements. 

Ethereum On Exchanges Reaches Lowest Level 

In another related update, Ethereum reserves on exchanges have dropped to its lowest levels since 2016, as more users stake their ETH, according to data from Glassnode. 

Currently, only 14.85% of all ETH is held in centralized exchange wallets, a level unseen since the early days of Ethereum. In contrast, during the 2021 bull market, exchange balances were around 25-26%. 

Low exchange balances are generally considered bullish as they indicate limited ETH supply available for purchase, thereby driving up prices. The recent surge in the popularity of staking has contributed to the decline in available supply. 

The report said that since the Shapella upgrade’s introduction, over 4.4 million additional ETH coins have been staked, with large holders opting for passive income generation rather than selling their assets. 

Analysts at Binfinex predict this trend will continue, driven by expected deflationary forces pushing up ETH’s price. Meanwhile, cryptocurrency trading volumes have experienced a significant decline. 

Binance, the world’s largest crypto exchange, saw a 48% decrease in spot trading volume for the second consecutive month in April, reflecting an industry-wide decline of 40% due to macroeconomic uncertainties and U.S. bank collapses.

Nevertheless, with notable changes unfolding in the crypto market, including a dwindling supply of ETH for sale and declining trade volumes, industry observers are closely monitoring the potential effects on the overall market and the future price of Ether in the months ahead.

According to the current price analysis of Ethereum, it is trading at $1,833.33, up by about 2.10% in the last 24 hours. However, the weekly chart recorded a slight increase of about 0.48%. 

ETH 1D graph coinmarketcap 1 1
Source: Coinmarketcap

In addition, its trading volume has witnessed a decrease of 10.22%, reaching $5,842,947,055, whereas the market capitalization has increased by 2.16% in the last 24 hours.

Related Reading | 5 Best Free Cryptocurrency Cloud Mining Sites in 2023 – Side Hustle to Earn Passive Income

Bitcoin Market Insights: Negative Bias & Miner’s Accumulation Of 8.2K BTC

by

Glassnode, the renowned crypto analytics firm, in a recent tweet, shared some intriguing insights into the current state of Bitcoin. Their analysis focused on the profit/loss ratio and the volume of Bitcoin deposits to exchanges, shedding light on the prevailing trends in the market.

According to Glassnode’s findings, Bitcoin deposit volume’s profit/loss ratio, or bias, currently stands at a negative 0.7. It suggests that an influx of coins flows into exchanges at a loss, raising eyebrows among crypto investors.

However, Glassnode’s findings offer valuable insights into the dynamics of the Bitcoin market. The negative bias of the overall deposit volume highlights the potential bearish sentiment as coins are being moved to exchanges at a loss. 

Delving deeper into the data, Glassnode dissected the exchange inflow bias based on the distinction between Short and Long-term Holders (STHs and LTHs). 

Remarkably, Long-term Holders emerged as the winners in this analysis, with a positive bias of 1.73, indicating profitable inflows.

image 87 2

On the other side, STHs faced a negative bias of 0.69, which closely mirrored the overall market bias of 0.7. This data suggests that, at present, Short-term Holders dominate the exchange inflows.

image 87 1

Nevertheless, the disparity between Short and Long-term Holders reveals an interesting contrast, with Long-term Holders reaping profits while Short-term Holders face challenges.

Miners Expand Bitcoin Holdings By 8.2K BTC

In another significant analysis, Glassnode unveiled a noteworthy finding related to Bitcoin. Their analysis centered around the aftermath of the FTX implosion, which had witnessed a substantial outflow of Bitcoin. However, what followed this tumultuous event was a rather intriguing development.

Glassnode’s data revealed that miners, with the exception of Patoshi and early unlabelled miners, have been actively bolstering their balance sheets. In fact, they managed to expand their holdings by an impressive 8.2K BTC, catapulting their total Bitcoin stash to a substantial 78.5K BTC.

image 87

This revelation sheds light on an interesting trend within the mining community. Despite the FTX implosion and the resultant outflow of Bitcoin, miners have displayed resilience and a proactive approach to enhancing their holdings. 

Well, such an accumulation of BTC by miners can be viewed as a testament to their confidence in the long-term value of the world’s leading cryptocurrency.

Related Reading | Litecoin Soars: 160M Transactions Milestone & Anticipation Builds For Halving Event

Bitcoin’s Quiet Consolidation: Low Volumes & Dormant Wallets Signal Market Restraint

by

According to a recent report by Glassnode, the Bitcoin market has experienced a period of consolidation, trading within a tight price range and recording extremely light on-chain volumes.

The report also highlights that a significant portion of the coin supply remains dormant in investor wallets, with several key age bands reaching all-time highs.

This week’s trading range for Bitcoin has been exceptionally narrow, fluctuating only 3.4% between a low of $26.6k and a high of $27.5k.

image 73
Bitcoin's Quiet Consolidation: Low Volumes & Dormant Wallets Signal Market Restraint 23

This level of consolidation has not been seen for quite some time, with similar instances observed in the 2023 yearly open and the recovery period after the COVID-induced market sell-off in July 2020.

On-chain volume has been notably low, with both aggregate and exchange-related flows at cyclical lows. Moreover, substantial Bitcoin remains inactive in investor wallets, indicating a lack of market activity.

image 75

This trend is further supported by the decline in exchange deposit volume, which has plummeted from a peak of $4.2 billion in May 2021 to a mere $343.4 million currently, representing a significant drop of 91.8%.

Bitcoin: Realized Profit & Loss At Three-Year Low

The report also delves into the concept of realized profit and loss events, offering insights into the market’s capital flows. The combined realized profit and loss levels are currently trading at their lowest point in the last three years, suggesting that holders with substantial profits or losses are reluctant to spend their Bitcoin.

image 75 1

Another noteworthy observation is the prevailing sentiment among market participants, as indicated by the Adjusted MVRV Ratio.

The recent rally above $30k resulted in a modest 21% level of unrealized profit, which has now dropped to just 9% within the market. This indicates that there is limited profit potential available to active participants.

image 75

The report further highlights the significant amount of Bitcoin held in investor wallets for extended periods. The supply held for over one year continues to reach new highs, with most of the supply remaining inactive. Long-Term Holder Supply, representing coins held for more than 155 days, has also reached an all-time high.

image 76

Nevertheless, the data presented in the report paints a picture of strong holder conviction and a lack of willingness to spend Bitcoin.

Despite the low volume throughput and lackluster inflow of new demand, existing holders remain resilient and seemingly unaffected by the extreme volatility witnessed in the past two years. However, it is suggested that these holders may require higher prices before considering selling their holdings.

Related Reading | Crypto Tax Myth Busted: No, MetaMask Won’t Hold Your Funds for Taxes