U.Today – Capital inflows into (BTC), the largest cryptocurrency, are falling into a “quiet” zone as the excitement surrounding the launch of the Bitcoin Spot ETF has completely subsided. Such phases usually occur before robust volatility spikes, Glassnode experts say in a up-to-date report.
Bitcoin ETF Euphoria Completely Disappears, On-Chain Metrics Say
As net capital inflows into Bitcoin (BTC) have slowed, a degree of equilibrium has been reached between investors making gains and losses, the Glassnode team says in its latest report, “The Week On-Chain.” The last few days of August seem particularly unemotional in this regard, with 89% of days seeing greater capital inflows than today.
Furthermore, the compelling MVRV Ratio indicator suggests that investor profitability has essentially returned to an equilibrium position, and the enthusiasm and euphoria following the launch of the BTC ETF in the US in January this year is no longer there.
The Sell-Side Risk Ratio also confirms the “equilibrium” theory: the price of most coins is approaching the original purchase price.
All these indicators point to upcoming spikes in the volatility of the largest cryptocurrency, researchers emphasize:
At the time of going to press, Bitcoin (BTC) is attempting to protect the $61,500 level after a brutal rejection of the $65,000 level yesterday. However, only $29 million of positions, almost all long, have been erased in the past 24 hours.
Long-term holders do not sell, even at a loss
Bitcoin (BTC) selling pressure is currently being driven mainly by short-term holders, while HODLers maintain their confidence, according to Glassnode research.
Q2-Q3 2024 were painful for newcomers. After establishing an all-time high in March, up-to-date investor confidence was tested by volatile, sideways price action for several months. During this process, a significant portion of Bitcoin’s supply remained tightly held and within the three- to six-month age range.
Meanwhile, a significant portion of the supply held by up-to-date Bitcoin holders transitions into long-term holding, having been held for at least 155 days.
