Are you a savvy investor looking to stay ahead of the curve in the ever-changing world of cryptocurrency? Look no further, as we delve into the latest insights from Glassnode experts on the capital inflow trends of Bitcoin (BTC) and what it means for your investment strategy.
Bitcoin ETF Euphoria Fades Away: What On-Chain Metrics Reveal
The excitement surrounding the Bitcoin Spot ETF launch has cooled off, leading to a drop in capital inflow into BTC. According to Glassnode’s “The Week On-Chain” report, investors are now in a phase of equilibrium, balancing profit-taking and losses. The MVRV Ratio indicator suggests that investor profitability has reset to a neutral position, signaling a lack of excitement post-BTC ETF launch in the U.S. earlier this year.
The Sell-Side Risk Ratio indicator further supports this theory, indicating that most coins are being moved near their original acquisition price. These metrics hint at potential volatility spikes on the horizon for Bitcoin.
Long-Term Holders Stay Strong Amidst Short-Term Selling Pressure
While short-term holders are driving the current selling pressure on Bitcoin, long-term “HODLers” are holding strong, according to Glassnode research. Despite a challenging period for newcomers in Q2-Q3 of 2024, long-term holders are maintaining their confidence in the cryptocurrency. A significant portion of the Bitcoin supply is held by long-term holders, with new investors transitioning into this category after holding their coins for at least 155 days.
As Bitcoin struggles to maintain key support levels, understanding these capital inflow trends can help you make informed decisions about your investment strategy. Stay tuned for potential volatility spikes in the coming days, and consider adjusting your portfolio accordingly.
For more detailed insights on Bitcoin capital inflow trends and volatility predictions, check out the full article on U.Today.