Glassnode

The Week On-Chain 09, 2024 The risk appetite for Bitcoin investors is increasing, with growing signs of speculation appearing across capital flows, exchange activity, derivatives leverage, and even institutional demand. Executive Summary - Bitcoins recovery is near completion as capital continues to pour into the asset class, propelling the Realized Cap to $460B, and only 3% shy of its ATH. - Exchange inflow volumes are near all-time-highs, with Short-Term Holders dominating the flows. This suggests a relatively strong demand for speculation and trading activity. - Open interest in both futures and options markets are also near all-time-highs, and directional short-sellers continue to bet against the uptrend, resulting in over $465M in liquidation volume over the last 30-days. Read more in The Week On-Chain newsletter.

During bear markets, liquidity is predominantly provided for the Top 50 tokens, as this is where the majority of trade volume occurs. The Top 10 tokens are mainly comprised of WETH, WBTC, and Stablecoins. By looking at the percent change in TVL for each token category, we can detect an increase in liquidity provided for the Top 10 (5.14%) and Top 20 (10.9%) tokens, whilst liquidity has been removed for tokens ranked 20 to 50. This suggests that the market appetite for long-tail assets has not yet picked up meaningfully. Discover more in the latest Week On-Chain below 👇 https://glassno.de/4bUAXaW

In this week's Glassnode Clips, we analyse Futures Open Interest: - Investors often move to high-leverage futures positions during market upswings, which adds more risk to the system. - A significant shift of open interest from Binance to CME highlights a change in trader activity and preferences. - Evaluating open interest in both USD and BTC terms is essential for a true understanding of leverage and market dynamics, beyond Bitcoin's price movements. Discover more in the latest Glassnode Clips below 👇 https://www.youtube.com/watch?v=b9HROwiunXo&t=28s

Today, we're providing a status update on our Bitcoin Risk Assessment Framework, a tool for discretionary traders to gauge market sentiment and underlying risk. Below, you can see the latest reading on selected risk metrics. High volatility ahead? Take a look. Want to checkout all the metrics in our Risk Assessment Dashboard? Click here: https://glassno.de/48c6bXT

Today, we're providing a status update on our Bitcoin Risk Assessment Framework, a tool for discretionary traders to gauge market sentiment and underlying risk. Below, you can see the latest reading on selected risk metrics. High volatility ahead? Take a look. Want to checkout all the metrics in our Risk Assessment Dashboard? Click here: https://glassno.de/48c6bXT

How can supply metrics help you identify market inflection points and better time your trades in the Bitcoin market. Find out in the first of our momentum trader's checklist series. Tailored for traders, the checklist includes: Five-step method: - Discover five key questions to guide your analysis of Bitcoin supply dynamics. Learn how changes in supply can correlate significant price movements. Suggested analysis: - A deep-dive on how to leverage SLRV Ribbons to spot early signs of market momentum shifts. Find out how to combine this powerful metric with other indicators. Download the checklist here: https://glassno.de/42PM4gU

In terms of asset performance, Bitcoin and Ethereum are leading the pack, with YTD gains of +17.6% and +18.2%, respectively. We note that following the approval of the Bitcoin ETF, ETH has started to outperform BTC, which is a change from the relative underperformance throughout 2023. On the other hand, the aggregate Altcoin market cap has not experienced the same performance, with YTD growth being less than half of the two majors. Discover more in the latest Week On-Chain 👇 glassno.de/4bUAXaW

The Week On-Chain 08, 2024 With the new Bitcoin ETFs now live for over a month, Bitcoin has continued to impress investors, rallying to over $52k, and holding that level. Meanwhile, many in futures markets continue to bet against the trend, seeing an uptick in short liquidations. Executive Summary - Global market assessment using NUPL and MVRV indicators. - Analysis of futures market open interest, and leverage ratio. - Observations of short-side interest betting against the trend. - Overview of exchange flows, comparing dominance of the majors. Watch our latest video analysis report.

We can see that the total volume of Bitcoin LTH Supply held in loss is currently 777.8k BTC, and is trending towards the zero bound as prices rise. Just 6.5% of the aggregate LTH supply is therefore held in loss. Previous instances where the LTH cohort held a similar coin volume in loss corresponds with early bull market conditions (with 2019 as an arguable outlier). Discover more in the latest Week On-Chain below 👇 https://glassno.de/3wfrElD

In this week's Glassnode Clips, we analyse Long-Term Holder Supply and GBTC: - Long-term holders and GBTC significantly impact Bitcoin's market dynamics, showing most short-term holders remain in profit unless they sold during recent corrections. - GBTC's accumulation and the movement of its coins play a crucial role in shaping the long-term holder supply, affecting the market's supply and demand balance. - The movement of approximately 148,000 Bitcoin by long-term holders highlights significant market activity, suggesting that observing these changes can reveal insights into investor sentiment and the direction of the market. Discover more in the latest Glassnode Clips below 👇 https://www.youtube.com/watch?v=vNjifxSebO8&t=1s

With Bitcoin breaking through the $52K region, the Short-Term Holder cohort responded by locking in a Net Realized Profit / Loss of +$647M, the largest since the 2021 all-time high formation. For further information regarding Short-Term Holder Capital Flows, please visit our Dashboard below 👇 https://glassno.de/43OgVKg

The chart below presents a breakdown of the Bitcoin supply by the cost basis at which it was acquired. We can see that the vast majority of coins (87%) were acquired below $48k, with a very large cluster of Short-Term Holder supply located between $40k and $45k. However, Long-Term Holders dominate the 13% of supply held in loss, reflecting 'top buyers' from the 2021 rounded top and ATH. Discover more in the latest Week On-Chain below 👇 https://glassno.de/3wfrElD

Explore the latest in our February 2024 Finance Bridge: Insights on Bitcoin ETF approvals, stablecoin growth, and crypto volatility trends. Learn how these factors influence capital flows and trading strategies in the evolving market. Dive into our analysis for essential data on Ethereum's performance, market momentum, and actionable strategies for traders.A must-read for those trading and investing in the digital asset market at professional and institutional levels. Read the full analysis here: https://glassno.de/3HX4rae

Bitcoin has reclaimed the $1T market cap, a key milestone, for the first time since December 2021. It now has a bigger capitalization than giants such as Walmart, Tesla, or even Berkshire Hathaway. However, for valuing digital assets like BTC, market cap has its limitations. For deeper insights into actual capital inflows that can be readily incorporated into directional trading strategies, explore the Realized Cap, a key on-chain metric. Valuing each coin at the price of its last move, it makes a superior metric for gauging true trends and momentum. To learn about this foundational on-chain metric, click here: https://insights.glassnode.com/the-realized-cap-foundation/

The Week On-Chain 06 ,2024 Bitcoin investors have been rewarded for their patience and conviction, with BTC prices rallying to multi-year highs above $50k. The volume of supply held at a loss is also thinning quickly, with just 13% falling into this category. Executive Summary - Long-Term Holders have spend approximately 300k BTC since their supply peaked in Nov 2023. Just over half of these reflect GBTC outflow volumes. - With the market trading at multi-year highs above $50k, the volume of supply held in loss is thinning out, reaching just 13% of the global total. - The ETF sell-the-news correction in Jan-Feb has many characteristics of a classic 'bull market correction' through the lens of Short-Term Holders. Read more in The Week On-Chain newsletter and watch our latest video analysis report.

In this week's Chart of the Week, we examine the Short-Term Holder MVRV Ratio, an indicator for short-term Bitcoin market trends. How does this metric inform us about potential local tops or bottoms? With historical data showing that peaks in MVRV often align with market adjustments, what do the current MVRV Ratio levels suggest for the near-term market direction? https://www.youtube.com/watch?v=Eja2CRtwhw8

In this week's Glassnode Clips, we analyse SOPR Momentum: - SOPR (Spent Output Profit Ratio) serves as a quick indicator, providing immediate insights into market changes by tracking profits or losses from spent coins, contrasting with slower-moving unrealized profit and loss metrics. - SOA (Spent Output Age Bands) offers early warnings of shifts in profitability and market sentiment, relating closely to SOPR and comparing short-term to long-term averages for insight. - Together, SOPR and SOA reveal market momentum by showing how profit-taking rates and demand balance each other, influencing trends and market stability. Discover more in the latest Glassnode Clips below 👇 https://www.youtube.com/watch?v=VmuvpTzcTFo&t=36s

After the challenging recovery since the FTX collapse, this indicator has advanced to 2.06, entering the High Risk 🟧 regime. As noted, these levels are typically seen during the early stages of bull markets, as long-term investors return to a relatively meaningful level of profitability. Read the Report here: https://glassno.de/49jl8IQ