- Bitcoin ETF euphoria completely vanished
- Long-term holders remain confident
- Periods of quiet and volatility expectation
Capital inflow into Bitcoin (BTC), the largest cryptocurrency, drops to the 'quiet' zone as excitement about the Bitcoin Spot ETF launch has cooled off. Experts from Glassnode say such phases usually precede powerful volatility spikes.
Bitcoin ETF euphoria completely vanished
According to the latest 'The Week On-Chain' report from Glassnode, net capital inflow into Bitcoin has lost traction, reaching a degree of equilibrium between investors taking profit and loss. The last days of August looked particularly apathetic in this regard: 89% of days experienced a capital inflow larger than today.
Long-term holders remain confident
Amidst tumultuous market conditions as of late, long-term holders have been locking in a reasonably consistent $138 million in profit per day. Glassnode researchers also note that investor profitability has essentially reset to an equilibrium position, and the excitement after the BTC ETF launch in the U.S. this January is no longer present. Most coins are being moved at prices near their original acquisition costs.
Periods of quiet and volatility expectation
All these metrics hint at upcoming volatility spikes for the largest cryptocurrency. Researchers emphasized that periods of quiet and calm market structure are short-lived and often precede heightened volatility. As of press time, Bitcoin is trying to protect the $61,500 level after being rejected at $65,000 yesterday. However, only $29 million in positions have been liquidated in the last 24 hours, almost all longs.
In the context of current market conditions, the key factor for Bitcoin remains the behavior of long-term and short-term holders. Reduced excitement and capital inflow hint at potential volatility spikes in the near future.
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