Bitcoin (BTC) investors are showing a reduced appetite for speculation amid a state of equilibrium across on-chain activity and perpetual futures markets, according to a recent report by Glassnode.
The report highlighted a decline in profit and loss-taking activities, with perpetuals funding rates returning to neutral levels. This suggests a significant decrease in speculative interest among market participants, regardless of the instrument or crypto.
Additionally, the report said there has been a notable decline in liquidation volumes in perpetual contracts compared to the excitement around the March all-time high. This further supports the notion of reduced speculative appetite and suggests a more spot-dominated market regime.
Glassnode also noted that net capital inflows into Bitcoin have slowed down in recent months, indicating a balance between investors taking profits and those realizing losses.
The report revealed that the net realized profit/loss is currently at over $15 million per day, significantly lower than the $3.6 billion per day capital inflow experienced when the market set the $73,000 all-time high in March.
Additionally, the MVRV Ratio, a metric used to gauge investors’ average unrealized profit, has tested its all-time average value of 1.72 over the past two weeks. This level has historically marked a transition point between macro bull and bear market trends.
Notably, a portion of short-term investors became long-term investors after the all-time high, as their confidence was tested by the sideways price action that followed the price peak. Long-term holders are addresses that have held Bitcoin for longer than 155 days.
A significant amount of these investors decided to sit onto their holdings and wait, resulting in a portion of the Bitcoin supply standing still for three to six months.
The report stated:
“Currently, coins aged 3m-6m account for over 12.5% of the circulating supply, with a structure similar to the mid-2021 sell-off, but also during the height of the 2018 bear market.”
Glassnode concludes that these indicators point to a reset in speculative interest across the entire crypto market, with spot markets likely to drive price action in the near term.
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