Glassnode

For all charts featured in the Mastering the Realized Cap report, please visit the Dashboard below 👇 https://glassno.de/456zfi9

The Realized Cap is one of the most important on-chain metrics, and is an essential primitive for analysts to master. In this report, we document how the Realized Cap, and its derivatives, describe the fear and greed response of investors, which are the primal forces driving Bitcoin market cycles. Discover more below 👇 https://glassno.de/3PA7kCy

For all charts featured in the Mastering the Realized Cap report, please visit the Dashboard below 👇 https://glassno.de/456zfi9

The Realized Cap is one of the most important on-chain metrics, and is an essential primitive for analysts to master. In this report, we document how the Realized Cap, and its derivatives, describe the fear and greed response of investors, which are the primal forces driving Bitcoin market cycles. Discover more below 👇 https://glassno.de/3PA7kCy

The Realized Cap is one of the most important on-chain metrics, and is an essential primitive for analysts to master. In this report, we document how the Realized Cap, and its derivatives, describe the fear and greed response of investors, which are the primal forces driving Bitcoin market cycles. Discover more below 👇 https://glassno.de/3PA7kCy

Liquidity across the digital asset market continues to dry up, with both on-chain and off-chain volumes reaching historical lows. Whilst HODLing remains the market preference, a significant proportion of the supply is teetering on the edge of falling into a significant unrealized loss. Executive Summary - Liquidity, volatility, and volumes continue to compress across the digital asset market, with many metrics falling back to 2020 pre-bull levels. - Stablecoins are experiencing a persistent decline in supply as redemptions are made across all major stablecoin assets with the exception of Tether (USDT). - The Long-Term Holder cohort are steadfast in their holdings, spending remarkably little of it. - Short-Term holders on the other hand are teetering on the edge of profitability, with a large majority of their supply acquired above the current price range. Read more in The Week On-chain Newsletter and our latest Video Report.

Glassnode Co-Founder Rafael Schultze-Kraft is going to be on a panel at token2049 tomorrow to discuss how to best navigate blockchain and web3 data. If you're attending, make sure to check it out and connect with us at our booth on level 5!

Chart of the Week is Live! This week, we're focusing on the Spent Output Profit Ratio (SOPR). Grasp the practical implications of SOPR for your trading and investment decisions. Dive deep into this metric and stay ahead in the current uncertain environment. https://www.youtube.com/watch?v=KEPRMS-ifBY

In this week's Glassnode Clips, we focus on BTC vs ETH Exchange Flow Dominance: - This metric gauges the proportion of USD funds flowing in and out of exchanges attributed to Bitcoin and Ethereum. A higher value signals Bitcoin dominance, while a lower value suggests Ethereum dominance. - Throughout 2023, Bitcoin's dominance has noticeably increased, moving from around 50% to between 65-75%. This rise in BTC exchange flow dominance indicates capital moving down the risk curve, suggesting a weakening of risk appetite. - Despite the increase in Bitcoin's dominance, net capital outflows persist across the digital asset space, highlighting that caution remains the dominant sentiment. Discover more in the latest Glassnode Clips below 👇 https://www.youtube.com/watch?v=o_Htt6cKYIY

Capital tends to flow into the digital asset market primarily via three assets; #Bitcoin, #Ethereum, and #Stablecoins. With stablecoins proliferating in recent years, and becoming a dominant quote pair, we can use the relative flow of funds between these assets to gauge aggregate market demand. In our latest video report, we cover the shifting tides of capital flows: - Review the Recovering from a Bitcoin Bear dashboard. - Use aggregate capital flow metrics to assess macro demand. - Assess the relative balance between stablecoins and the majors. - Shifting dominance that helps establish a view over the risk curve. Visit our Capital Rotation dashboard for a full set of charts covered in this weeks video report.

The latest edition of The Week On-chain newsletter is live. We introduce and establish a set of tools we can use to assess sentiment and market positioning in Uniswap Liquidity Pools. Executive Summary - Event driven volatility has re-entered digital assets markets in recent weeks, with notable indicators of aggregate capital outflows flagged leading into it. - Derivative markets show a continual outflow of liquidity, particularly across ETH futures suggesting capital continues to move higher up the risk curve to relative safety. - We deep dive into how Uniswap liquidity pools have many similarities to options markets, with Liquidity Providers expressing a view on both volatility, and price levels. Read more in the latest edition of The Week On-chain newsletter.

🚀 Glassnode's Chart of the Week is here! Dive into the aftermath of the Grayscale legal victory against the SEC and discover the Realized Loss Momentum tool to spot market inflection points. Why has the market given up all its gains? Should investors brace for more downside? Equip yourself with the latest on-chain insights and stay ahead of the curve. https://www.youtube.com/watch?v=8LiMcMcEMR0

In this week's Glassnode Clips, we focus on evaluating risk in centralized cryptocurrency exchanges: - The Measure of Liquidity Reliance ratio aims to gauge an exchange's level of dependency by looking at 30-day flows to/from another exchange relative to its balance. - A higher Exchange Reliance Ratio may suggest increased counterparty risk, a consideration that could be especially relevant for smaller exchanges. - Sudden shifts in the ratio might act as early warning signs, as likely indicated by Alameda's influence on FTX's outflows in June 2022. Discover more in the latest Glassnode Clips below 👇 https://youtu.be/Z62l6dtB5rQ

The latest Week On-Chain Video is live! This session focuses on assessing risk in centralized crypto exchanges: - Exchanges remain the centrepiece of the digital asset industry, where the vast majority of trade takes place. - Our assessment, based on entity-adjusted data, indicates that 54% of the economical on-chain volume for Bitcoin is related to either exchange deposits or withdrawals. - Drawing insights from the lessons of the FTX collapse, we introduce three metrics to pinpoint unusual exchange activity: the Reshuffling Ratio, the Reliance Ratio, and the Whale Withdrawal Ratio." - Using this exchange risk framework, we assess Binance, Coinbase, Huobi and FTX to provide an overview of various exchange on-chain behaviors. Find out more in the latest Week On-Chain 👇 https://www.youtube.com/watch?v=B2aWvbiwOTo

With hindsight and lessons learned from FTX, the monitoring of exchange related risks is a critical component of digital asset risk management. In our latest report, we develop three indicators which help highlight periods of heightened counter party risk. We analyse the top four assets BTC, ETH, USDC and USDT, across four case study exchanges; Binance, Coinbase, Huobi and FTX. Read more in The Week On-chain

In this week's Glassnode Clips, we take a closer look at the Bitcoin options market, providing insights into last week's flash crash: - Implied volatility was historically low before the crash, leaving the market unprepared for sudden price movements. - Despite the chaos, options open interest remained stable, showing no mass panic and minimal forced deleveraging. This contrasts sharply with the $2.5B mass deleveraging observed in the futures market. - The options market wasn't the primary catalyst for the sell-off, but it did adjust quickly, with volatility and delta skew rising significantly. Discover more in the latest Glassnode Clips below 👇 https://www.youtube.com/watch?v=9gqEuv96H2k

We are proud to Introduce Cointime Economics, a new framework to analyse the #Bitcoin economy, developed in collaboration with ARKInvest. This novel framework establishes a new suite of analysis tools, 30+ new metrics, and improved valuation and pricing models. We build upon the pioneering work by Tamás Blummer, who discovered the Liveliness and HODLed and Lost coins metrics in 2018. We progress these concepts, exploring how units of coin-time can provide an elegant and detailed perspective into the dynamics of the #Bitcoin economy. Cointime Economics opens the door on several groundbreaking innovations: - Efficient tools to discount lost and long-dormant supply. - Improved economic calculations which isolate active investors. - Superior estimates of the market cost basis and mean reversion models. - Cointime derived valuation and pricing models applicable to all digital assets. Cointime Economics comes in two parts and a live charting suite: - Part I by ARK-Invest which is an overview whitepaper for investors - Part II by Glassnode which is a deep breakdown of the framework from first principles for analysts - Live chart suite available within Glassnode Studio We have also prepared a video overview and blog post, both covering the key innovations as a primer.

The latest edition of The Week On-chain video report is live. In this edition, we cover: - Range and expansion and how higher volatility has finally arrived. - A deleveraging in futures markets appears to be the main catalyst. - On-chain indicators suggest there is a risk of being ‘top-heavy’. - Deep dive into Realized Profit/Loss Ratio Momentum. Full details in our latest video analysis report.

#Bitcoin bulls were caught off guard last week with the largest sell-off in 2023 sending $BTC below $25k. A deleveraging in futures markets is the likely catalyst, however a bigger concern may be the 88.3% of Short-Term Holder supply now held in an unrealized loss. In this edition, we analyse the #Bitcoin sell-off across four key areas of interest: - Key pricing models lost as support - Options markets repricing volatility - Futures market deleveraging - Spot markets being top-heavy To close, we introduce a new on-chain #Bitcoin indicator designed to monitor inflection points in investor sentiment, positioning and trends. This tool is experimental, however is very responsive when the market is top-heavy and price sensitive. Read more in the latest edition of The Week On-chain

Introducing Glassnode Clips: Digestible, bite-sized answers to your burning crypto questions. This week? A deep dive into Bitcoin's Realized Cap Breakdown: - Bitcoin's realized cap serves as an essential tool in assessing capital flows; upward trends signal net inflows into the asset, while downtrends point to net outflows. - Analyzing the 2023 data reveals a clear inverse relationship between short-term and long-term holders, especially evident during the notable February dip at 19.8k. - Observing the market behavior, after witnessing short-term holders anchoring during lows, it's evident they are now operating speculatively, while long-term holders stand as the market's stable pillars. Discover more in the latest Glassnode Clips below 👇 https://www.youtube.com/watch?v=ufFTwh6COPA