Are Bitcoin's On-Chain Metrics Signaling a Major Shift? Insights from Glassnode
The Daily Hodl•3 months ago•
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Are Bitcoin's On-Chain Metrics Signaling a Major Shift? Insights from Glassnode

Market Sentiment
bitcoin
glassnode
marketanalysis
cryptocurrency
on-chainmetrics
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Summary:

  • On-chain metrics indicate Bitcoin may face sideways movement or further correction.

  • Hot Capital has decreased 66.7% from December's peak.

  • Diminished exchange volume and low funding rates suggest reduced demand.

  • Current BTC price is $92,579, down 3% in 24 hours.

  • BTC remains over 14% down from its all-time high of $108,135.

Bitcoin's On-Chain Metrics Indicate Potential Sideways Movement or Correction

Recent on-chain metrics from the analytics firm Glassnode suggest that Bitcoin (BTC) may be facing a period of sideways movement or potentially more corrections due to weakening buying pressure.

Bitcoin Metrics

According to Glassnode, the short-term demand momentum for BTC has significantly diminished. They noted on the social media platform X that:

"One key indicator: Hot Capital (capital revived over the last 7 days) has plunged 66.7% from its December 12th peak of $96.2 billion to $32.0 billion."

Hot Capital Decline

Furthermore, the firm highlights that:

  • Diminished exchange volume momentum and low funding rates are also indicative of reduced demand.
  • The 30-day average of exchange volume is approaching the 365-day average, showcasing reduced capital flows since the December market peak.
  • The seven-day moving average of the mean funding rate remains below the neutral value of 0.01%, indicating a lack of demand from aggressive buyers, despite a brief rally towards $102,000.

"Without a new catalyst, the waning short-term demand suggests either a sideways consolidation period or a heightened likelihood of further correction."

As of now, Bitcoin is trading at $92,579, reflecting a 3% decline over the past 24 hours and more than 4% over the last seven days. It also remains over 14% down from its all-time high of $108,135 set in December.

Current BTC Price

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