U.Today – The latest on-chain data from Glassnode reveals that (BTC) investors are expressing doubts about the cryptocurrency’s short-term prospects.
This attitude is reflected in the decline in on-chain transaction volumes on exchanges, which indicates a cautious approach by market participants.
In a recent Twitter post, Glassnode noted that Bitcoin investors remain unconvinced in the brief term as on-chain trading volumes related to the exchange have begun to decline.
Meanwhile, centralized exchanges continue to be the central venue for speculation and price discovery. As such, assessing the on-chain volumes aggregated across these venues can be used to gauge investor activity and speculation appetite.
According to Glassnode, analysis of the 30-day/365-day crossover momentum for exchange-related inflows and outflows indicated that the average monthly volume fell well below the yearly volume. This highlights the decline in investor demand and lower speculator turnover in the current BTC price range.
Bitcoin Network Faces Settlement Slowdown Even as Hash Rate Rises
This drop in volume coincides with a slowdown in settlements on the Bitcoin network. The Bitcoin network currently processes and settles about $6.2 billion in transaction volume per day.
However, settlement volumes are starting to decline toward their annual average, suggesting a marked cooling in network utilization and bandwidth. 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, indicates an enhance in selling pressure from investors over the past 90 days, contributing to the downward price trend.
Despite the despondent outlook on BTC metrics, Glassnode noted that Bitcoin’s hash rate is quickly approaching recent all-time highs as the mining scene grows more competitive and confident in the Bitcoin network.
At the time of writing, BTC has fallen 1.21% in the last 24 hours to $56,119.
