U.Today – Capital inflows into (BTC), the largest cryptocurrency, falls into the “quiet” zone as the enthusiasm for the launch of the Bitcoin Spot ETF has completely cooled down. Normally, such phases occur before strong volatility spikes, Glassnode experts say in the latest report.
Bitcoin ETF euphoria has completely faded, according to on-chain metrics
As the net inflow of capital into Bitcoin (BTC) loses steam, a certain balance has been reached between investors making profits and losses, the Glassnode team states in its latest “The Week On-Chain” report. The last days of August seem particularly listless in this regard, with 89% of days seeing a larger inflow than the current one.
Moreover, a telling indicator of the MVRV index suggests that investor profitability has essentially returned to the breakeven position and the enthusiasm and exuberance following the launch of the BTC ETF in the US in January is no longer there.
The Sell-Side Risk Ratio indicator also tests the “equilibrium” theory: most currencies move close to their original purchase price.
The researchers stressed that all of these metrics point to upcoming spikes in volatility for the largest cryptocurrency:
At press time, Bitcoin (BTC) is attempting to protect the $61,500 level after being brutally rejected at $65,000 yesterday. However, only $29 million worth of positions have been wiped out in the past 24 hours, almost all of which were long positions.
Long-term holders do not sell, even at a loss
Selling pressure on Bitcoin (BTC) right now is mostly driven by short-term holders, while HODLers remain confident, research from Glassnode reveals.
The second and third quarters of 2024 were painful for newcomers. After reaching the all-time high in March, the confidence of new investors was tested by a choppy, sideways price action for several months. During this process, a significant volume of Bitcoin’s supply held firmly and is within the three- to six-month age band.
Meanwhile, a notable portion of the supply held by new Bitcoiners is transitioning to long-term holder status, having held for at least 155 days.
This article was originally published on U.Today
