🔍📊 In our latest Chart of the Week, we analyze Glassnode's 'accumulation trend score by wallet cohort'. This metric offers insights into the investment patterns of Bitcoin market participants, differentiated by the size of their holdings. It highlights how larger and smaller investors react to market changes, providing a nuanced understanding of market dynamics. This perspective can be beneficial in forming your investment approach, particularly in volatile markets. https://youtu.be/klYNF6_6Cnc

Our data science team has developed 10+ core on-chain concepts for institutions: 👇

Refine your strategy with our complete guide: https://glassno.de/46t6CMD

For now, here are 3 of these transformative metrics:

- Realized Profit and Loss: Evaluates value changes in coins from on-chain transactions, providing insights into profit or loss for financial impact assessment and market trends.

- Net Unrealized Profit and Loss (NUPL): Measures hypothetical profit or loss at current prices, highlighting the difference between acquisition costs and current values, crucial for identifying market cycles.

- Spent Output Profit Ratio (SOPR): Analyzes profit and loss across all on-chain transactions in a set period, vital for market timing and sentiment analysis.

For more personalized demonstrations or in-depth discussions, visit our institutional page: https://glassnode.com/institutions#contact

The Week On-chain 48, 2023
The growth rate of the Ethereum validator set has slowed in recent weeks, as an increasing number of validators voluntarily exit. This has slowed the rate of ETH issuance. Alongside increasing ETH burnt via EIP1559 due to growing network activity, the ETH supply has turned deflationary once again.

Executive Summary
- The Ethereum staking pool has experienced a significant trend change marked by an increasing amount of validators exiting since October. This development correlates with a broader bullish uptrend across digital asset markets.
-The increased number of validator exits has contributed to a decline in daily ETH issuance, which is related to the amount of active ETH within the staking pool.
- Simultaneously, we have seen increased network activity, driven by renewed interest in tokens and stablecoins. This is reflected by an increase in gas fees being burnt via EIP1559 triggering a deflationary turn the ETH supply.


Read more in The Week On-chain newsletter.

In this week's Glassnode Clips, we focus on URPD Cost Basis Analysis:

- URPD analysis highlights key cost basis zones, showing significant Bitcoin accumulation between $25K and $31K.
- An airgap can be noted between $31k and $33k, with price having passed through here quickly.
- Emerging trends in Bitcoin's cost basis are observed around $33K to $35K, reflecting recent profit-taking and potential future market dynamics.

Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=URTPtRoi2n8

Our Data Science team have built the Internal Reshuffling Ratio for Crypto Risk and Portfolio Managers. This indicator measures internal transaction activities within an exchange, highlighting fund management and potential risk.

- Analysis: An elevated ratio suggests heightened internal activity, possibly indicating risk factors or operational anomalies that require attention.

- Interactive View: Explore its implications in detail here: https://glassno.de/414tEZa

- Connect with Experts: Connect with our product experts here: https://glassno.de/3uJRE7X

Following the introduction of the Internal Reshuffling Ratio by our Analysts and Data Science team yesterday, we continue our series today with the Exchange Reliance Ratio for Crypto Risk and Portfolio Managers.

This innovative ratio provides insights into inter-exchange dependencies and liquidity, shedding light on market interconnectedness and potential liquidity risks.

- Analysis: Fluctuations in this ratio are key indicators of shifts in market dynamics, making it an invaluable tool for proactive risk assessment.

- Interactive View: Dive deeper into how this ratio influences market dynamics. Explore here: https://glassno.de/3R5aSfv

- Connect with Experts: For a comprehensive understanding and analysis, our expert team is available for consultation. Connect here: https://glassno.de/3uJRE7X

Building on our recent introductions of the Internal Reshuffling Ratio and the Exchange Reliance Ratio, our Analysts and Data Science team have created the Whale Withdrawal Ratio for Crypto Risk and Portfolio Managers.

This latest ratio tracks significant withdrawal activities by major investors, serving as an indicator of market confidence and stability.

- Analysis: Monitoring trends in this ratio is crucial for risk managers to anticipate and prepare for shifts in the market.

- Interactive View: Gain in-depth insights about this ratio here: https://glassno.de/3t5mDuv

- Connect with Experts: Engage with our product experts for a comprehensive understanding. Connect here: https://glassno.de/3uJRE7X

In this week's Glassnode Clips, we focus on Bitcoin Year-to-Date Performance vs USD and Gold:

- Bitcoin surged over 140% against the USD and doubled in value compared to gold this year, highlighting its robust performance and growing appeal as an investment asset.
- Gold briefly achieved a new all-time high, reaching approximately $2,150 USD, setting a significant record in its value across all fiat currencies.
- Bitcoin is increasingly competing with gold for 'sound money' investments, driven by rising institutional interest and the introduction of Bitcoin ETFs, reflecting a shift in investment strategies.

Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=cT4r0rwmGsc&t=61s

🔍📊 In our latest Chart of the Week, we examine Bitcoin whales, defined as investors with more than 1,000 BTC. Their presence in the market is linked with certain trends: an increase in their numbers during bear markets and peaks at market tops.

This year, there has been a rise in the activity of these investors, particularly when Bitcoin's price remained stable. This pattern suggests a strategic approach in their Bitcoin transactions, offering insights for market analysis. https://www.youtube.com/watch?v=b1freK9eZBs

The Week On-chain 50, 2023
Bitcoin performed a round-trip this week, rallying to new yearly highs before selling off back towards its weekly open. After such a powerful 2023 thus far, the rally seems to have met resistance, with several indicators suggesting a degree of near-term exhaustion.

Executive Summary
The strong Bitcoin uptrend found resistance this week, breaking to a new yearly high of $44.5k before experiencing the third sharpest selling off of 2023.
Several on-chain pricing models suggest that 'fair value' based on investor cost basis and network throughput are lagging, hovering between $30k and $36k.
In response to strong price appreciation over recent months, Bitcoin Short-Term Holders have taken profits at a statistically meaningful magnitude, pausing the climb.

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

How can institutional investors navigate the Bitcoin market post halving in April 2024? Gain insights with James Check, Glassnode's Lead Analyst and Cointime Economics co-author, in the Coinbase Institutional Podcast.

Key Insights for Institutional Investors:

- Shift in Market Dynamics Post-Halving: Exploration of how the Bitcoin market is expected to evolve post-halving, particularly focusing on the changing dynamics of supply and demand, and the impact on price movements.

- Influence of Long-term Holders: Discussion on how long-term Bitcoin holders might react to the halving event, their potential influence on market stability, and trends post-halving.

- Impact on Investment Strategies: Analysis of how institutional investors can adjust their strategies in anticipation of the halving, including considerations for risk management and capital allocation.

Discover in-depth analysis in the full episode: https://glassno.de/3RItXpB

In this week's Glassnode Clips, we focus on Bitcoin's Daily Price Change:

- Workbench is used for detailed visualization and analysis of Bitcoin's daily price changes.
- Important daily price movements in Bitcoin are highlighted using if-then statements and standard deviation bands to mark major positive and negative changes.
- The recent 5.7% sell-off is recognized as Bitcoin's third largest in 2023, with the analysis drawing on past significant market events to provide context on its volatility.

Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=ojv9M9kAmOE

Our analysts have pinpointed three essential metrics tailored to trend traders:

The convergence of these three metrics serves as a precise indicator of critical market inflection points. Trend traders can leverage these insights for strategic decisions, whether to close long positions or initiate short positions.

Realized Cap Net Position Change

- Spotlights periods of significant capital inflows, signaling opportune moments for entering or exiting positions.
- Strategically aligned with identifying the euphoric phase of a bull market.

Binary CDD

- Highlights the timing when experienced investors divest their holdings, often following an all-time high (ATH).

Realized HODL Ratio (RHODL Ratio)

- Analyzes the wealth distribution between seasoned and novice traders.
- Reflects the transfer of wealth from informed investors to retail traders.

For personalized demonstrations or in-depth discussions, visit our institutional page: https://glassnode.com/institutions#contact

The Week On-chain 51, 2023
In this last edition for the year, we will do a whirlwind tour of what changed this year, on-chain. We will explore how the Bitcoin, Ethereum, Derivative, and Stablecoin landscapes have evolved in 2023, and how this sets up the space for an exciting road ahead.

Executive Summary
- 2023 has been an incredible year for digital assets, with Bitcoin up over 172%, correcting less than 20%, and net capital inflows into BTC, ETH and Stablecoins.
- The market has broken above several important technical and on-chain pricing models this year, with October being a major pivot point for institutional capital flows.
- Long-Term Holders currently hold a near all-time-high of the Bitcoin supply, and a super-majority of coins are now held in profit.
- Major market structure shifts are taking place, such as Tether re-asserting dominance amongst stablecoins, CME futures flipping Binance, and significant frowth of Options markets.

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

In this week's Glassnode Clips, we focus on NVT Price:

- The NVT price model is used to estimate Bitcoin's fair value, highlighting its economic relevance by comparing market cap to transaction volume.
- In its analysis, the model concentrates on economically meaningful transactions, filtering out internal exchange movements and wallet transfers to enhance the accuracy of its insights.
- Recent observations from the NVT price model reveal a mismatch between Bitcoin's price rise and transaction volume, indicating rapid price increases, with a noticeable uptick in transaction activity starting from October, coinciding with an influx of new capital into the Bitcoin market.

Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=DBgdfVaM7g0

In this week's Glassnode Clips, we focus on Short-Term Holder Profit Cycles:

- Short-Term Holder Profit Cycles Analysis highlights Bitcoin's short-term holders' influence on market dynamics, focusing on those who spend coins acquired within the last five months.
- The model tracks short-term holder coins moving from loss to profit, emphasizing periods that impact future price movements and measuring the duration of these profits.
- The analysis of consolidation periods and market inflection points shows how sustained consolidation forms a basis for price rallies, with quick changes in short-term holders' profit/loss status indicating key market shifts.

Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=MlUOMUEl0jo

In this week's Glassnode Clips, we focus on Bull Market Corrections:

- The analysis uses Workbench to isolate and examine significant bull market periods, color-coding each epoch for clarity.
- It evaluates the depth of corrections within bull markets, assessing drawdowns from local highs to gauge the intensity of market dips.
- The 2023 market cycle demonstrates resilience, with relatively shallow corrections and rare drawdowns beyond 20%, indicating a strong and steady upward trend for Bitcoin.

Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=s3T8L6Yaeq0

Introducing the Q1 2024 Guide To Crypto Markets by Coinbase Institutional and Glassnode.

The 44-page Guide dives into Bitcoin, Ethereum, Stablecoins, Derivatives and portfolio allocation.

Here are some key takeaways from the report:

- Correlations have changed: Explore how cryptocurrency, particularly in 2023, returned to showing low correlations with traditional assets, reinforcing its role as a unique risk factor in diversified portfolios.

- Enhanced portfolio performance: Review data from March 2018 to October 2023 showing how adding the Coinbase Core Index to a traditional 60/40 portfolio improved both absolute and risk-adjusted returns.

- Stablecoins on the rise: Understand how various stablecoins contributed to the overall growth in circulating supply seen in Q4.

Download the guide here: https://get.glassnode.com/q1-2024-guide-to-crypto-markets/

Yesterday marked the launch of the Q1 2024 Guide to Crypto Markets by Coinbase Institutional & Glassnode, and today we highlight a key piece of analysis from the report:

BTC Monthly Realized Volatility Bands

- Annual Perspective: Bollinger Bands applied over a one-year lookback period to capture a broad view of market trends.

- Volatility Insights: Pinpoints when volatility is notably high or low—identifying periods of significant price expansion/contraction or unusual calm.

These insights are crucial for investors to spot both turbulent periods and times of quiet before potential market movements.

For more insights, download our guide: https://get.glassnode.com/q1-2024-guide-to-crypto-markets/

Also, check out the accompanying dashboard for an interactive experience of the guide's insights: https://studio.glassnode.com/dashboards/8ce2df90-f7fa-4d66-595e-4d81584825ea

The SEC has greenlit 11 Spot Bitcoin ETFs, marking a significant shift for the Bitcoin market. Let's examine the on-chain impact:

- Hash Rate hit a new peak over 600 EH/s, demonstrating network strength.

- Daily on-chain transactions exceed $5.7B, with exchange flows at $4.6B.

- Futures Open Interest is at $17.6B, with crypto collateral down to 22%.

- Bitcoin's Realized Cap nears an all-time high at $438B, suggesting increased demand.

- Holder Realized Prices indicate new market entrants:

🟠 $22.4K
🔴 $37.5K
🔵 $20.9K

Despite the rising market, HODLing persists as the prevailing strategy. Yet, a rise in Short-Term Holder supply hints at emerging distribution to new investors.

For full analysis, visit: https://x.com/glassnode/status/1745458120338604490?s=20

In this week's Glassnode Clips, we focus on Market Year-to-Date Price Performance in 2023:

- Bitcoin experienced exceptional growth in 2023, with its market cap increasing by 170%, significantly outperforming traditional assets, and its dominance was particularly notable since October.
- Ethereum has lagged behind, evidenced by its ratio to Bitcoin reaching multi-year lows, which indicates that its growth hasn't kept pace with Bitcoin's.
- The wider altcoin sector, excluding Ethereum and stablecoins, has shown a steady performance, which parallels that of Ethereum, in stark contrast to Bitcoin's rapid growth.

Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=ALH1NGilj5I&t=1s