Bitcoin Investors Express Doubts in Short-Term Outlook as On-Chain Volumes Decline: Glassnode Report
Recent data from Glassnode shows that Bitcoin investors are skeptical about the cryptocurrency's immediate future. The decrease in exchange-related on-chain volumes indicates a cautious approach among market participants.
In a recent tweet, Glassnode highlighted the lack of conviction among Bitcoin investors in the short term as on-chain volumes on exchanges dwindle. Despite centralized exchanges being the main platform for speculation and price discovery, the decrease in on-chain volumes suggests reduced investor demand and less trading activity in the current price range.
The analysis of the 30-day/365-day momentum crossover for exchange-related inflows and outflows revealed a significant drop in monthly average volume compared to the yearly average. This indicates a decline in investor interest and speculation in BTC.
Furthermore, there is a settlement slowdown on the Bitcoin network, even though the hashrate is surging. The network is processing around $6.2 billion worth of transactions daily, but the settlement volume is decreasing towards its yearly average. The CVD indicator shows an increase in investor sell pressure, contributing to the downward price trend.
Despite these bearish metrics, Glassnode noted that the Bitcoin Hash Rate is nearing all-time highs, showing miners' growing confidence in the network. At the time of writing, BTC was down 1.21% in the last 24 hours, trading at $56,119.
In conclusion, the declining on-chain volumes, settlement slowdown, and increased sell pressure suggest a cautious sentiment among Bitcoin investors. The surging hashrate, however, indicates strong miner conviction in the network's long-term prospects. Investors should monitor these metrics closely to make informed decisions about their Bitcoin holdings.