bitcoin-bull-market-glassnode/” rel=”nofollow”>Glassnode On-Chain Analytics Platform has provided insight into why the price of bitcoin recently fell below $70,000. The platform suggested that the flagship does not yet have enough demand, which could push its price to new highs.
bitcoin demand remains modest
In one of its last markets reports, Glassnode mentioned that “the speed at which new capital flows into the bitcoin network has slowed considerably from its peak.” They made this claim based on the Realized Cap metric, which measures the value of each bitcoin based on the last time it was traded. bitcoin-supply-bought-above-60000-glassnode/” rel=”nofollow”>glass node stated that bitcoin's realized limit currently stands at $574 billion.
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The platform further revealed that liquidity injection into bitcoin has cooled since the flagship cryptocurrency hit a bitcoin-breaks-through-69000-setting-new-record/” rel=”nofollow”>all-time high (ATH) of $73,750. This is in stark contrast to the period before bitcoin reached that ATH, with Glassnode noting that flows into bitcoin back then were “extremely intense, culminating in a value of $3.38 billion daily.”
Meanwhile, Glassnode stated that the bitcoin-realized-cap-breaks-ath-capital-inflows/” rel=”nofollow”>Made cap “It remains in a territory dominated by positive earnings and is returning to a position of equilibrium.” However, they noted that modest demand for bitcoin was still able to spark this recent rally thanks to “fewer selling headwinds from mature investors.”
Basically, Glassnode suggested that things were looking up for bitcoin, but that it could be much better if there were more capital inflows. In fact, there could soon be a surge in capital inflows, considering bitcoin Spot ETFs have broken their bitcoin-spot-etfs-record-outflow/#:~:text=Spot%20Bitcoin%20ETFs%20Experience%20Massive,staggering%20outflow%20of%20%24563.7%20million.” rel=”nofollow”>streak of net outflows and once again they are recording bitcoin-etfs-record-inflows/” rel=”nofollow”>impressive net inflows in their funds.
x.com/FarsideUK/status/1793489504206008367″ rel=”nofollow”>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 bitcoin-tidal-wave-blackrock-etf-leads-inflows/” rel=”nofollow”>iShares bitcoin Trust (IBIT) by BlackRock most profitable day yet, with the fund raising $290 million.
Some key positive takeaways
Glassnode also evaluated a few others bitcoin-on-chain-metrics-that-every-trader-should-know/” rel=”nofollow”>vital metrics on chain, 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 that the market has found a bitcoin-mining-remarkable-equilibrium/” rel=”nofollow”>degree of balance in the course of this correction.”
To assess market volatility, they also measured the percentage range between the highest and lowest prices over the past 60 days. They concluded that “volatility continues to compress to levels typically observed after long consolidations and before major market movements.”
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Meanwhile, Glasnode revealed that 2.14 million btc of the bitcoin-short-term-holders-4-5-profits-nov-2021/” rel=”nofollow”>Short-Term Fork (STH) The supply, currently at 3.36 million btc, suffered 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 being held at unrealized losses, reducing the risk of higher heaviness developing.
Featured image created with Dall.E, chart from Tradingview.com