Glassnode Co-Founder Rafael Schultze-Kraft is going to be on a panel at token2049 tomorrow to discuss how to best navigate blockchain and web3 data. If you're attending, make sure to check it out and connect with us at our booth on level 5!

Liquidity across the digital asset market continues to dry up, with both on-chain and off-chain volumes reaching historical lows. Whilst HODLing remains the market preference, a significant proportion of the supply is teetering on the edge of falling into a significant unrealized loss.

Executive Summary
- Liquidity, volatility, and volumes continue to compress across the digital asset market, with many metrics falling back to 2020 pre-bull levels.

- Stablecoins are experiencing a persistent decline in supply as redemptions are made across all major stablecoin assets with the exception of Tether (USDT).

- The Long-Term Holder cohort are steadfast in their holdings, spending remarkably little of it.

- Short-Term holders on the other hand are teetering on the edge of profitability, with a large majority of their supply acquired above the current price range.

Read more in The Week On-chain Newsletter and our latest Video Report.

🔍 Finance Bridge by Glassnode is our go-to resource for traditional finance entities looking to integrate on-chain insights into their trading and investments. In the September edition, we delve into Bitcoin's momentum shifts as seen through on-chain profitability metrics, explore how macroeconomic dynamics impact the crypto markets, and explain how to use the Realized Cap to inform you trading and investment strategies. Discover all these insights here: https://insights.glassnode.com/finance-bridge-edition-4/

📢 Fresh from Glassnode: This week's Chart of the Week looks for insights in the the Short-Term Holder Supply in Profit metric. Get a grip on the sentiment of recent market entrants and understand the potential market shifts. How can you hedge yourself against potential losses? Equip yourself with knowledge that will help you navigate the Bitcoin market in the days and weeks to come. https://www.youtube.com/watch?v=OZ8CszH7gtA

With almost all Short-Term Holders now underwater on their position, sentiment has shifted towards the negative. In this report, we explore several measures to track investor sentiment. We develop indicators which assess divergences between the market and observed investor behavior.

Executive Summary
We review the market position relative to two on-chain pricing models, both of which are intersected during past cycle lows, and in the March 2020 sell-off.
Patterns of accumulation and distribution tend to align with local highs and lows, and we demonstrate how this plays out in on-chain data.
A super-majority of Short-Term Holders are now underwater on their position, with a new indicator suggesting negative sentiment dominates this cohort at present.


Read more in The Week On-chain Newsletter and our latest Video Report.

In this week's Glassnode Clips, we focus on Stablecoin Dominance:

- Tether (USDT) is regaining its market dominance, closely approaching its previous peak levels. This resurgence indicates its escalating importance, especially in markets outside the United States.
- A noteworthy increase in USD Coin's (USDC) outflows has been observed in 2023, a trend likely driven by U.S. capital migrating toward markets offering higher interest rates.
- Pertinent to the overall stablecoin environment, a net outflow is evident across the board, suggesting a prevailing trend of stablecoin redemptions in the market.

Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=LbjMKR7rzf0

In this week's Glassnode Clips, we focus on RHODL Ratio:

- High RHODL values indicate that a significant proportion of the Bitcoin supply is being held in coins that have recently moved, illustrating a tendency towards short-term holding, whereas low values are indicative of predominant long-term holding.
- The RHODL Ratio is currently near its two-year median, which has traditionally been crucial in indicating market transitions; the lack of a clear break in either direction is emphasizing the current state of high market indecision.
- The RHODL Ratio has consistently served as a reliable indicator in identifying key market trends and shifts, positioning it as an essential tool for comprehensive market analysis.

Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=LUt0XkuHyGs

Innoscriptions have been a significant buyer of Bitcoin blockspace since their introduction in Feb 2023. In this edition, we explore whether innoscriptions are displacing monetary transfers, and how the increase in fees has impacted miner profitability.

Executive Summary
Innoscriptions act as a form of buyer of last resort for cheap blockspace, and appear to be sensitive to the absolute fee paid.
Innoscriptions are best thought of as a sort of 'packing filler' which is stuffed into any remaining space once the higher value monetary transfers are packed into blocks.
Analysis of fees and volume need to consider that there can be a higher perception of 'value' assigned to the innoscriptions beyond the BTC volume being transferred and held.
Despite a meaningful uptick in fee revenue for miners, the halving event is likely to put many of them into extreme income stress unless BTC prices increase meaningfully.

Read more in The Week On-chain Newsletterand our latest Video Report.

In this week's Glassnode Clips, we focus on the upcoming Bitcoin Halving:

- We delve into the implications of the halving, exploring how the reduction in rewards will necessitate a significant increase in Bitcoin’s price to prevent operational losses for miners, potentially leading to the exit of those who can't maintain efficiency in this new landscape.
- Our models reveal a strong correlation between mining difficulty and market cap with a discernible stress point evident 24,000 USD.
- In a post-halving scenario, the focus intensifies on the survival and efficiency of miners, with indicators suggesting a requisite Bitcoin value above 30,000 USD to alleviate stress, thus offering a glimpse into market resilience and health under varying conditions.

Discover more in the latest Glassnode Clips below  👇
https://www.youtube.com/watch?v=G0lf7q9OmOc

New Chart of the Week is up! We're exploring the on-chain cost basis and MVRV metrics, spotlighting short-term holders. With Bitcoin's price testing its local range, why are these some of the key on-chain indicators to watch? Watch the video below for insights that can help you with your trading and investment decisions: https://youtu.be/GgDLdZPAX8I