2024-8-28 01:15 |
Bitcoin (BTC) investors are showing a reduced appetite for speculation amid a state of equilibrium across on-chain activity and perpetual futures markets, according to a recent report by Glassnode.
The report highlighted a decline in profit and loss-taking activities, with perpetuals funding rates returning to neutral levels. This suggests a significant decrease in speculative interest among market participants, regardless of the instrument or crypto.
Additionally, the report said there has been a notable decline in liquidation volumes in perpetual contracts compared to the excitement around the March all-time high. This further supports the notion of reduced speculative appetite and suggests a more spot-dominated market regime.
Glassnode also noted that net capital inflows into Bitcoin have slowed down in recent months, indicating a balance between investors taking profits and those realizing losses.
The report revealed that the net realized profit/loss is currently at over $15 million per day, significantly lower than the $3.6 billion per day capital inflow experienced when the market set the $73,000 all-time high in March.
Additionally, the MVRV Ratio, a metric used to gauge investors’ average unrealized profit, has tested its all-time average value of 1.72 over the past two weeks. This level has historically marked a transition point between macro bull and bear market trends.
Notably, a portion of short-term investors became long-term investors after the all-time high, as their confidence was tested by the sideways price action that followed the price peak. Long-term holders are addresses that have held Bitcoin for longer than 155 days.
A significant amount of these investors decided to sit onto their holdings and wait, resulting in a portion of the Bitcoin supply standing still for three to six months.
The report stated:
“Currently, coins aged 3m-6m account for over 12.5% of the circulating supply, with a structure similar to the mid-2021 sell-off, but also during the height of the 2018 bear market.”
Glassnode concludes that these indicators point to a reset in speculative interest across the entire crypto market, with spot markets likely to drive price action in the near term.
The post Bitcoin investors turn cautious as speculative appetite wanes – Glassnode appeared first on CryptoSlate.
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