Bitcoin Price Rally Failed to Attract Active Users, Exchange Flows Reveals ‘Lackluster’ Demand – Glassnode

Bitcoin Price Rally Failed to Attract Active Users, Exchange Flows Reveals 'Lackluster' Demand – Glassnode
Source: AdobeStock / gearstd

The current uptrend for bitcoin (BTC) didn’t entice a brand new wave of lively customers, whereas change flows additionally counsel a “relatively lacklustre influx of capital,” the on-chain analytics agency Glassnode has discovered.

Writing within the newest concern of The Week On-chain report, Glassnode’s analysts described the shortage of curiosity from new bitcoin customers through the rally between late June and early August as one of many major elements behind “weakness and subsequent rejection of the price from [USD] 24.4k back below the Realized Price.”

The failure to entice new lively customers was “particularly noticeable amongst retail investors and speculators,” the report added.

Bitcoin’s Realized Price is the worth of all circulating cash on the value they have been purchased, divided by the variety of cash in circulation, and is commonly considered the break-even value for the typical bitcoin investor. The Realized Price presently stands at round USD 21,700.

Further within the report, Glassnode additionally pointed to change flows as one other signal of elementary weak point within the Bitcoin market in the intervening time. According to the report, the month-to-month momentum of change flows is now signaling solely lackluster curiosity from buyers.

“Exchange flows have now declined to multi-year lows, returning to late-2020 levels. Similar to the retail investor volumes, this suggests a general lack of speculative interest in the asset persists,” the report mentioned.

It added that the worth rally that adopted the June backside within the Bitcoin market “was not accompanied by a significant influx of speculators into the market,” which signifies that the rally had “little substance behind it from an on-chain perspective.”

Bitcoin Price Rally Failed to Attract Active Users Exchange Flows
Source: Glassnode

In conclusion, Glassnode famous that the present construction of the Bitcoin market is “certainly comparable with the late-2018 bear market.” However, it additionally warned that the market “does not yet have the macro trend reversal in profitability and demand inflow required for a sustainable uptrend.”

At 9:15 UTC on Wednesday morning, BTC was buying and selling at USD 21,352, down lower than 1% in a day and practically 11% in every week.


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