Capital Inflow into Bitcoin (BTC) Hits "Quiet" Zone as Bitcoin ETF Euphoria Fades, Glassnode Report Reveals
In the latest report from Glassnode, experts highlight that capital inflow into Bitcoin (BTC) has dropped to a "quiet" zone as excitement surrounding the Bitcoin Spot ETF launch has dissipated. This period of relative calm typically precedes significant volatility spikes in the market.
The Glassnode team notes that a balance has been struck between investors taking profit and loss, with net capital inflow losing momentum. The MVRV Ratio indicator suggests that investor profitability has reset to equilibrium levels, signaling a lack of excitement following the BTC ETF launch earlier this year.
Additionally, the Sell-Side Risk Ratio indicator supports the theory of market equilibrium, with the majority of coins being traded near their original acquisition price. These metrics collectively point towards potential volatility spikes on the horizon for Bitcoin.
As of the latest data, Bitcoin is currently defending the $61,500 level after facing a sharp rejection at $65,000. The majority of positions liquidated in the last 24 hours were long positions, totaling $29 million.
Interestingly, long-term holders of Bitcoin are holding onto their assets despite the current selling pressure primarily driven by short-term holders. The research from Glassnode reveals that despite a challenging period for newcomers in 2024, long-term holders are maintaining their confidence in the market.
In conclusion, the data suggests that Bitcoin is approaching a period of heightened volatility, with short-term holders driving current selling pressure while long-term holders remain steadfast in their conviction. Investors should be prepared for potential price swings in the near future.
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