On-chain analytics platform Glassnode Offered insight into why Bitcoin prices are rising Recently fell below $70,000The platform suggests that there is still not enough demand for its flagship product, which could cause prices to reach new highs.
Bitcoin demand remains subdued
One of the newest markets ReportsGlassnode said that “the rate at which new funds are entering the Bitcoin network has slowed significantly since its peak.” They based this assertion on the Realized Cap metric, which measures the value of each Bitcoin based on the time it was last traded. glass node He claimed that Bitcoin's maximum realization is currently $574 billion.
The platform further revealed that liquidity injections into Bitcoin have cooled since the flagship cryptocurrency reached its all-time high. All-time high (ATH) $73,750. This is in stark contrast to the period before Bitcoin reached its ATH, with Glassnode reporting that inflows into Bitcoin at the time were “very steep, reaching $3.38 billion daily at its peak.” ” he pointed out.
Meanwhile, Glassnode states: Realization Cap “It remains in the realm of profit dominance and is returning to equilibrium.” However, they noted that Bitcoin's subdued demand was able to fuel this recent rally thanks to “weakening sell-side headwinds from mature investors.”
Essentially, Glassnode suggested that things are looking up for Bitcoin, but could be even better with more capital inflows. Given that the Spot Bitcoin ETF has outperformed expectations, capital inflows could increase soon. A series of net outflows And recording again Impressive net inflows To their funds.
data According to Far Side Investors, these funds have already seen net inflows of nearly $700 million this week. Specifically, these Bitcoin ETFs saw net inflows of $305.7 million on May 21 alone. BlackRock iShares Bitcoin Trust (IBIT) The fund earned $290 million, its highest return ever.
Some positive points
Glassnode also reviewed several other Important On-Chain Metrics, this has brought some positives to Bitcoin's future trajectory. The platform noted that Bitcoin's sell-side risk ratio has “declined significantly,” which it said “suggests the market has discovered the risk.” degree of equilibrium In the process of this amendment.”
To assess market volatility, they also measured the percentage range between the highest and lowest prices over the past 60 days. They said, “Volatility is the Long-term integration And before the market moves too much.”
Meanwhile, Glassnode received 2.14 million BTC Short Term Holders (STH) The current supply of 3.36 million BTC has fallen into unrealized losses following the recent market correction, suggesting that much of the BTC held by this category of investors is being held at unrealized losses, mitigating the risk of top-heavy holdings, they argue.
Featured image created by Dall.E, chart taken from Tradingview.com
