On-chain
analytics
platform
Glassnode

has
provided
insights
into
why
the
Bitcoin
price

recently
dropped
below
$70,000.
The
platform
suggested
that
the
flagship
isn’t
yet
seeing
enough
demand,
which
could
send
its
price
to
new
highs. 

Demand
For
Bitcoin
Is
Still
Modest

In
one
of
its
latest
market

reports,
Glassnode
mentioned
that
“the
rate
at
which
new
capital
is
flowing
into
the
Bitcoin
network
has
slowed
down
considerably
from
its
peak.”
They
made
this
assertion
based
on
the
Realized
Cap
metric,
which
measures
the
value
of
each
Bitcoin
based
on
the
last
time
it
was
traded.

 

Glassnode

claimed
that
Bitcoin’s
Realized
Cap
is
currently
at
$574
billion. 

Related
Reading

The
platform
further
revealed
that
the
injection
of
liquidity
into
Bitcoin
has
cooled
off
since
the
flagship
crypto
hit
an

all-time
high
(ATH)

of
$73,750.
This
is
in
stark
contrast
to
the
period
before
Bitcoin
hit
that
ATH,
with
Glassnode
noting
that
the
flows
into
Bitcoin
back
then
were
“extremely
sharp,
culminating
at
a
value
of
$3.38
billion
daily.”

Meanwhile,
Glassnode
stated
that
the

Realized
Cap

“remains
in
positive
profit-dominated
territory
and
is
returning
towards
an
equilibrium
position.”
However,
they
noted
that
Bitcoin’s
modest
demand
was
still
able
to
spark
this
recent
rally
thanks
to
the
“declining
sell-side
headwinds
from
mature
investors.”

Basically,
Glassnode
suggested
that
things
were
looking
up
for
Bitcoin
but
that
it
could
be
way
better
if
there
were
more
capital
inflows.
There
could
indeed
be
an
increase
in
capital
inflows
soon
enough,
considering
that
the
Spot
Bitcoin
ETFs
have
broken
their

 

streak
of
net
outflows

and
are
once
again
recording

impressive
net
inflows

into
their
funds. 

Data

from
Farside
Investors
shows
that
these
funds
have
already
seen
almost
$700
million
in
net
inflows
this
week.
Specifically,
these
Bitcoin
ETFs
recorded
a
net
inflow
of
$305.7
million
on
May
21
alone.
That
day
was
also

BlackRock’s
iShares
Bitcoin
Trust
(IBIT)

most
profitable
day
yet,
with
the
fund
taking
in
$290
million. 

Some
Positive
Key
Takeaways

Glassnode
also
assessed
some
other

vital
on-chain
metrics,
which
provided
some
positives
for
Bitcoin’s
future
trajectory.
The
platform
noted
that
there
has
been
a
“large
decline”
in
Bitcoin’s
Sell-Side
Risk
Ratio,
which
“suggests
the
market
has
found
a

degree
of
equilibrium

over
the
course
of
this
correction.”

To
assess
market
volatility,
they
also
measured
the
percent
range
between
the
highest
and
lowest
price
ticks
over
the
last
60
days.
They
concluded
that
“volatility
continues
to
compress
to
levels
typically
seen
after

lengthy
consolidations

and
prior
to
large
market
moves.”

Related
Reading

Meanwhile,
Glasnode
revealed
that
2.14M
BTC
out
of
the

Short-term
holder
(STH)

supply,
currently
at
3.36M
BTC,
fell
into
an
unrealized
loss
following
the
recent
market
correction.
They
claim
that
this
suggests
that
many
of
the
BTC
held
by
this
category
of
investors
are
held
at
an
unrealized
loss,
which
reduces
the
risk
of
top-heaviness
developing.

 

Featured
image
created
with
Dall.E,
chart
from
Tradingview.com

Go to Source
Author: Scott Matherson

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