U.Today – Recent on-chain data from Glassnode reveals that (BTC) investors are expressing doubts about the cryptocurrency's short-term prospects.
This sentiment is reflected in declining exchange-related on-chain volumes, indicating a cautious approach among market participants.
In a recent tweet, Glassnode noted that Bitcoin investors remain unconvinced in the near term as exchange-related on-chain volumes have begun to languish.
Meanwhile, centralized exchanges remain the hub of speculative activity and price discovery. Therefore, an assessment of aggregated on-chain volumes on these exchanges can be used to gauge investor activity and their appetite for speculation.
According to Glassnode, an analysis of the 30-day/365-day momentum crossover for exchange-related inflows and outflows indicated that the average monthly volume has fallen significantly below the annual volume. This highlights a drop in investor demand and lower activity from speculators in BTC’s current price range.
Bitcoin network faces slowdown in settlement, though hashrate increases
This drop in volume coincides with a slowdown in settlement on the Bitcoin network. Currently, the Bitcoin network processes and settles around $6.2 billion in transaction volume per day.
However, settlement volume is starting to fall back towards its annual average, suggesting a marked cooling in network usage and performance. Overall, this remains a net negative observation.
The CVD indicator, which reflects the current net balance of buying and selling pressure in the spot market, shows an increase in selling pressure from investors over the past 90 days, adding to the downward trend in prices.
Despite the pessimism in BTC metrics, Glassnode noted that Bitcoin’s hash rate is rapidly approaching new ATHs as the competitiveness of the mining scene and its conviction in the Bitcoin network grows.
At the time of writing, BTC was down 1.21% over the past 24 hours to $56,119.
This article was originally published on U.Today
