Glassnode

The Bitcoin Realized Cap is currently increasing at a rate of $54B/month, approaching levels last seen during the run-up in early 2021.

This highlights just how significant the capital inflows have been for Bitcoin, driven in part by the tremendous success and demand for the new US ETF products.

Discover more in the latest Week On-Chain below👇
https://glassno.de/3V8bvbY

The Week On-Chain 11, 2024
Bitcoin has broken to its fourth cycle all-time-high, rallying above $72k, and pushing sentiment one step closer to Euphoria. The classic wealth transfer from the HODLer cohort to speculators is now well underway, with significant upticks in spot profit taking, and demand for futures leverage.

Executive Summary
- Bitcoin has broken to a new ATH of $72k relative to the US Dollar, entering price discovery, and pushing investor sentiment closer to Euphoria.
- Numerous metrics indicate a striking similarity to past ATH breaks, where a wealth transfer from old HODLers to new investors and speculators is well underway.
- Realized profit metrics and futures funding rates have also spiked to significantly positive levels, suggesting elevated profit taking and demand for long side leverage.

Read more in The Week On-Chain newsletter and watch our latest video analysis report.

We're launching the first video walkthrough for our Bitcoin Momentum Traders Checklist series. Aimed at maximizing value for our Glassnode professional and institutional clients, each checklist will be explored in its own video.

Today's video analyses focuses on the Supply Dynamics Checklist and shows how tracking changes in supply can help spot major price trends ahead of time. https://www.youtube.com/watch?v=q0i_XAWwa5o

Make sure to download the checklist here: https://glassno.de/download-checklist

In this week's Glassnode Clips, we analyse Bitcoin's Quarterly, Monthly and Weekly Price Performance:

- Simultaneous gains exceeding 20% in quarterly, monthly, and weekly performance metrics are rare, typically marking euphoric market stages observed in significant uptrends like 2019 and 2021.
- Recent days with all three metrics surpassing the 20% gain threshold suggest the market is entering a euphoric phase, especially as it approaches previous all-time highs.
- Surpassing all-time highs usually attracts widespread attention, potentially expanding the investor base, especially with new factors like ETFs influencing the market.

Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=GXmBvPTi3Cs

One way to gauge the profitability of the market for any specific cohorts of Bitcoin investors is to leverage their on-chain cost basis and compare it with the spot price.

🔵 Long-Term Holders = $20.7K
🔴 Short-Term Holders = $45.8K
🟠Market Realized Price = $24.4K

With price trading at $68k, the long-term holders are, on average, sitting on an unrealized profit of ~228%.

Discover more in the latest Week On-Chain below 👇
https://glassno.de/3wD4W78

How can Bitcoin network usage data help you spot early signs of positive market momentum? Find out in our latest checklist designed for traders looking to capitalize on Bitcoin's fluctuations.

Analyze key indicators of network health and transaction dynamics with our four-step checklist for additional insights on strategic entry points and trend validation.

Key Insights to Discover:

- Anticipate market peaks and potential corrections by monitoring Bitcoin transaction counts and fee pressures.

- Find out how increased blockspace demand and heightened transactional activity can provide insight into BTC price movements.

- Identify early bullish trends and optimal entry points by analyzing 
on-chain data on new addresses and active entities.

Download the checklist here: https://glassno.de/3Tf8vYS

As Bitcoin's pushing past its previous cycle high, the latest Finance Bridge report analyses evolving investor strategies, the surge in speculative asset interest, and the influence of ETFs on market dynamics. We also delve into Bitcoin halving's market implications and provide a status update on our recent market momentum and risk assessment exploratory frameworks. 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/48MPbHU

The Week On-Chain 10, 2024
Bitcoin continues to surprise the market, with its recent rally pushing towards all-time-highs, even prior to the upcoming halving event. In this report, we assess how the demand inflows from the US Spot ETFs are interacting with the supply being released by Long-Term Holders taking profits.

Executive Summary
- Bitcoin prices are attacking the ATH once again, taking the market by surprise, and rallying with strength even prior to the widely anticipated halving event.
- We have seen a sudden spike in the average transaction size interacting with Coinbase, which highlights the size and scale of new institutional capital entering Bitcoin.
- Long-Term Holders have started to ramp up their distribution pressure, hitting spending rates of 257k BTC/month, with GBTC accounting for 57% of these volumes.

Read more in The Week On-Chain newsletter and watch our latest video analysis report.

It is crucial for directional traders to understand the dynamics of Bitcoin's price post-halving, which impacts scarcity, market cycles, demand, and mining profitability. To learn more about the ramifications of the halving, click here: https://glassno.de/48FoULL

With the Bitcoin halving just about 47 days away, Glassnode has lined up a wealth of insightful content for the coming weeks, suitable for both newcomers to this market as well as experienced digital asset investors. Our introductory article offers context and overview of the halving's effect on the market dynamics. It addresses trading strategies, market cycles, and mining companies operations post-halving.

Read it to get up to speed with all the relevant information on how to navigate the upcoming changes. 👇
https://glassno.de/48FoULL

In this week's Glassnode Clips, we analyse Bitcoin ETF Flows:

- Bitcoin ETFs, notably from BlackRock and Fidelity, have experienced strong inflows, indicating robust investor interest despite a decrease in GBTC's peak holdings.
- BlackRock and Fidelity's Bitcoin ETFs have recorded unprecedented 30-day inflows, marking a significant milestone in cryptocurrency adoption and investment.
- The slowing of GBTC outflows, coupled with high net inflows into other Bitcoin ETFs, suggests a shift in investor preference towards newer, regulated ETF offerings.

Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=fzyi0927_Xg&t=1s

Today we're sharing a video walkthrough of our Bitcoin market risk framework, created as a tool for discretionary traders to assess the probability of a BTC correction. In the video, we explain the purpose of the framework and how you can incorporate it in your risk management strategies. https://www.youtube.com/watch?v=WFVI3vKvkUE

Want to checkout all the metrics in our Risk Assessment Dashboard? Click here: https://glassno.de/3UYYz82

Our ETF Spot metric shows that the total balance held by US ETFs has soared past 760,000 BTC, with GBTC making up the lions share, followed by Blackrock. https://glassno.de/49WPell

Next in our checklist series designed for momentum traders, we're turning to profit and loss metrics. Find out how to optimize your trading strategy by leveraging data on near real-time profit-taking and loss-realization events in the Bitcoin market.

Key insights to discover:

- Spot potential trend reversals by analyzing when Bitcoin traders are taking losses or locking in profits with metrics like SOPR and MVRV.

- Understand market cycle phases to better time your trade entries.

- Identify upcoming seller exhaustion points - a bullish entry signal for momentum traders.

- Learn how to maximize your analysis with SOPR variants.

Download the checklist here: https://glassno.de/3SWE09U

Following a week of explosive price action and strong capital inflows, the Bitcoin Realized Cap has experienced a near full recovery, increasing to a value of $467.2B.

This places our current value just -0.22% below the ATH of $468.3B.

Discover more in the latest Week On-Chain below👇
https://glassno.de/3OXJOyt

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 and watch our latest video analysis report.

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