Assessing the Bitcoin Long-Term Holders, we can see their Realized Profit / Loss Ratio has gone exponential and vertical.
This a result of there being no LTHs in Loss when the market has only recently broken above the previous cycles ATH, and is further fuelled by a significant uptick in LTH profit taking.
Discover more in the latest Week On-Chain below 👇
https://glassno.de/3VLKLOH
This a result of there being no LTHs in Loss when the market has only recently broken above the previous cycles ATH, and is further fuelled by a significant uptick in LTH profit taking.
Discover more in the latest Week On-Chain below 👇
https://glassno.de/3VLKLOH
In this week's Glassnode Clips, we analyze SOPR Variants:
- Analysis shows sell pressure from long-term holders and GBTC intensifies as Bitcoin surpasses previous highs, following a cyclical pattern.
- SOPR metrics reveal the profit or loss on coins spent, highlighting a surge in profit-taking, especially by long-term holders during the current cycle.
- The entry of new liquidity through ETFs and media attention leads to accelerated profit-taking, with SOPR metrics peaking, indicating key moments of market tops and transitions.
Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=hXSExzZbY7E&t=2s
- Analysis shows sell pressure from long-term holders and GBTC intensifies as Bitcoin surpasses previous highs, following a cyclical pattern.
- SOPR metrics reveal the profit or loss on coins spent, highlighting a surge in profit-taking, especially by long-term holders during the current cycle.
- The entry of new liquidity through ETFs and media attention leads to accelerated profit-taking, with SOPR metrics peaking, indicating key moments of market tops and transitions.
Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=hXSExzZbY7E&t=2s
YouTube
Bitcoin: SOPR Variants - Glassnode Clips
In this week's Glassnode Clips, we focus on SOPR Variants. We analyze increased sell pressure as Bitcoin surpasses previous highs, following a predictable cycle. The segment highlights SOPR metrics to track profit-taking, especially by long-term holders during…
We can employ the fundamental Realized Cap metric to track the cumulative USD liquidity ‘stored’ within the Bitcoin asset class.
Currently, the Realized Cap resides at a new ATH value of $540B, and is increasing at an unprecedented rate of over $79B/month.
Discover more in the latest Week On-Chain below 👇
https://glassno.de/3VLKLOH
Currently, the Realized Cap resides at a new ATH value of $540B, and is increasing at an unprecedented rate of over $79B/month.
Discover more in the latest Week On-Chain below 👇
https://glassno.de/3VLKLOH
The Week On-Chain 15, 2024
In this edition, we analyse the surge in both spot trading, and onchain exchange volumes for Bitcoin underlying the strong YTD performance. The market has also transitioned into a euphoric phase, as profit-taking has climbed accordingly.
Executive Summary
- Bitcoin’s strong performance over the last 12 months is supported by a surge in both spot trade volume but also exchange deposit and withdrawal volumes.
- By inspecting the cumulative volume delta (CVD), we can see that a majority of 2023 saw net selling activity on the taker side, even though corrections have been historically mild and less than 20%.
- Profit taking by long-term holders spiked meaningfully into the $73k ATH and is cooling down in recent weeks. This comes alongside an uptick in new demand brought on by the US spot ETFs.
Read more in The Week On-Chain newsletter.
In this edition, we analyse the surge in both spot trading, and onchain exchange volumes for Bitcoin underlying the strong YTD performance. The market has also transitioned into a euphoric phase, as profit-taking has climbed accordingly.
Executive Summary
- Bitcoin’s strong performance over the last 12 months is supported by a surge in both spot trade volume but also exchange deposit and withdrawal volumes.
- By inspecting the cumulative volume delta (CVD), we can see that a majority of 2023 saw net selling activity on the taker side, even though corrections have been historically mild and less than 20%.
- Profit taking by long-term holders spiked meaningfully into the $73k ATH and is cooling down in recent weeks. This comes alongside an uptick in new demand brought on by the US spot ETFs.
Read more in The Week On-Chain newsletter.
This month's Finance Bridge examines the role of ETF inflows and wealth transitions in Bitcoin's rise, along with the ramifications of Ethereum's upgrade. The analysis includes a look at market momentum indicators and speculative trends as the Bitcoin halving approaches. A crucial read for finance professionals and institutional investors in the digital asset market.
Read the full article here: https://glassno.de/3VR40qg
Read the full article here: https://glassno.de/3VR40qg
Glassnode Insights - On-Chain Market Intelligence
Finance Bridge: Approaching the Halving
In our April 2024 Finance Bridge, we look at the rise of Bitcoin's volatility in the past month through the lens of on-chain analytics. We also provide a status update on Glassnode's Momentum Signal framework.
As the market reclaimed the 2021 cycle high, the Bitcoin Relative Realized Profit peaked at 1.8%, suggesting 1.8% of the market cap was locked in as profit over a 7-day period.
This is significant but remains comparatively lower than the profit-taking intensity during the January 2021 rally (3.0%.)
Discover more in the latest Week On-Chain below 👇
https://glassno.de/43OJxEt
This is significant but remains comparatively lower than the profit-taking intensity during the January 2021 rally (3.0%.)
Discover more in the latest Week On-Chain below 👇
https://glassno.de/43OJxEt
If we compare the Bitcoin ATH break in prior cycles, it could be argued that current Euphoria phase (market in price discovery) is still relatively young.
Previous Euphoria phases have seen numerous price drawdowns exceeding -10%, with the majority being much deeper, with 25%+ being commonplace. The current market has seen just two ~10%+ corrections since the ATH was broken.
Discover more in the latest Week On-Chain below 👇
https://glassno.de/43OJxEt
Previous Euphoria phases have seen numerous price drawdowns exceeding -10%, with the majority being much deeper, with 25%+ being commonplace. The current market has seen just two ~10%+ corrections since the ATH was broken.
Discover more in the latest Week On-Chain below 👇
https://glassno.de/43OJxEt
In this week's Glassnode Clips, we analyze NUPL by Cohort:
- Capitulation signs are revealed by NUPL by Cohort when all market participants face unrealized losses, signaling potential market bottoms and recovery points.
- Rising unrealized profits in any cohort as Bitcoin surpasses previous highs indicate a shift from enthusiasm to euphoria in the market.
- Historical analysis of NUPL shows that breaking all-time highs often leads to significant profit realization among cohorts, marking critical market phases.
Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=BQ6B4xyJ1xo&t=1s
- Capitulation signs are revealed by NUPL by Cohort when all market participants face unrealized losses, signaling potential market bottoms and recovery points.
- Rising unrealized profits in any cohort as Bitcoin surpasses previous highs indicate a shift from enthusiasm to euphoria in the market.
- Historical analysis of NUPL shows that breaking all-time highs often leads to significant profit realization among cohorts, marking critical market phases.
Discover more in the latest Glassnode Clips below 👇
https://www.youtube.com/watch?v=BQ6B4xyJ1xo&t=1s
YouTube
Bitcoin: NUPL by Cohort - Glassnode Clips
In this week's Glassnode Clips, we focus on net unrealized profit and loss (NUPL) across Bitcoin holder cohorts, highlighting shifts as the market exceeds past all-time highs. We explore the cyclical behavior of Bitcoin markets, identifying enthusiasm and…
During the last two bull markets, the aggregate share of Bitcoin wealth aged less than 6-months old reached between 84% and 95%, indicating a saturation of newer holders.
This metric has increased dramatically since early 2023, rising from 20% on 1-Jan-2023 to 47% today. This suggests that the capital held within the Bitcoin holder base is roughly balanced between long-term holders and new demand.
Discover more in the latest Week On-Chain below👇
https://glassno.de/43OJxEt
This metric has increased dramatically since early 2023, rising from 20% on 1-Jan-2023 to 47% today. This suggests that the capital held within the Bitcoin holder base is roughly balanced between long-term holders and new demand.
Discover more in the latest Week On-Chain below👇
https://glassno.de/43OJxEt
Introducing the Q2 Guide to Crypto Markets by Coinbase Institutional and Glassnode.
This second instalment analyzes price trends and key themes in the digital asset landscape in 2024.
Some highlights from the 59-page guide:
- Data on the bull: The last two bull markets lasted 3.5 years; currently, we're 1.5 years into another. Previously, price increases reached 113x and 19x, with this cycle ‘only’ reaching 4x so far.
- Rising popularity, rising maturity: As the crypto market grows, spot Bitcoin ETFs boost accessibility for institutional investors. Last quarter, they attracted $12B and now hold $60B in BTC, becoming key market influencers and among the fastest-growing ETFs.
- The perfect diversifier? From April 2019 - March 2024, adding a small crypto allocation to a traditional 60/40 portfolio notably boosted returns: a 3% allocation yielded 52.9% returns, & a 5% allocation brought 67.0%, far surpassing the traditional strategy’s 33.3% returns.
Download the guide here: https://glassno.de/3VUhtxx
This second instalment analyzes price trends and key themes in the digital asset landscape in 2024.
Some highlights from the 59-page guide:
- Data on the bull: The last two bull markets lasted 3.5 years; currently, we're 1.5 years into another. Previously, price increases reached 113x and 19x, with this cycle ‘only’ reaching 4x so far.
- Rising popularity, rising maturity: As the crypto market grows, spot Bitcoin ETFs boost accessibility for institutional investors. Last quarter, they attracted $12B and now hold $60B in BTC, becoming key market influencers and among the fastest-growing ETFs.
- The perfect diversifier? From April 2019 - March 2024, adding a small crypto allocation to a traditional 60/40 portfolio notably boosted returns: a 3% allocation yielded 52.9% returns, & a 5% allocation brought 67.0%, far surpassing the traditional strategy’s 33.3% returns.
Download the guide here: https://glassno.de/3VUhtxx
In just two days, the Bitcoin halving will reduce the block reward from 6.25 BTC to 3.125 BTC.
As detailed in our Q2 Guide to Crypto Markets, Bitcoin's price increased by 1,000%, 200%, and more than 600% in the 12 months following each of the previous halvings.
Will the upcoming halving have a similar effect? Dig deeper into this topic in the first article of our 'Spotlights' series, which will highlight key insights and critical market trends and events detailed in the Q2 Guide. 👇
https://glassno.de/3UlfFMM
As detailed in our Q2 Guide to Crypto Markets, Bitcoin's price increased by 1,000%, 200%, and more than 600% in the 12 months following each of the previous halvings.
Will the upcoming halving have a similar effect? Dig deeper into this topic in the first article of our 'Spotlights' series, which will highlight key insights and critical market trends and events detailed in the Q2 Guide. 👇
https://glassno.de/3UlfFMM
The Week On-Chain 16, 2024
The Ethereum community is debating a change to the ETH monetary policy, following a proposals aimed at constraining the rapid expansion of the staking pool. This is motivated by a surge in demand for Liquid Staking and Restaking protocols.
Executive Summary
- The Ethereum community is currently engaged in a heated debate regarding the ETH monetary policy following proposals to reduce the ETH issuance rate.
- New innovations such as Liquid Staking, Restaking, and Liquid Restaking have introduced additional yield opportunities, significantly boosting staking demand.
- Concerns are that the increasing prevalence of staking derivatives may dilute Ethereum's function as money, and shift the governance power of the network.
Read more in The Week On-Chain newsletter.
The Ethereum community is debating a change to the ETH monetary policy, following a proposals aimed at constraining the rapid expansion of the staking pool. This is motivated by a surge in demand for Liquid Staking and Restaking protocols.
Executive Summary
- The Ethereum community is currently engaged in a heated debate regarding the ETH monetary policy following proposals to reduce the ETH issuance rate.
- New innovations such as Liquid Staking, Restaking, and Liquid Restaking have introduced additional yield opportunities, significantly boosting staking demand.
- Concerns are that the increasing prevalence of staking derivatives may dilute Ethereum's function as money, and shift the governance power of the network.
Read more in The Week On-Chain newsletter.
Bitcoin ETFs now hold 851k BTC, about 4.3% of all circulating Bitcoin. After starting with weekly inflows from $1.2 billion to $2.5 billion, there's been a slowdown since late March. As Bitcoin consolidates around $60k following its recent drop, could this signal further corrections ahead?
Explore the trends in our 'Spotlights' series: 👇
https://glassno.de/444veM8
Explore the trends in our 'Spotlights' series: 👇
https://glassno.de/444veM8
Attention institutional investors! Join us today, April 22nd, 2024, at 04:30 PM EST for an insightful webinar with Glassnode's lead analyst, James Check, and Ben Floyd, Head of Execution Services at Coinbase Institutional.
In this session, James and Ben will provide a comprehensive view of the metrics that matter most to institutional traders. They will share actionable insights on key topics, including:
- Correlations to traditional assets and the role of crypto in building diversified portfolios.
- Insights on where we are in the current market cycle and how it compares to previous cycles.
- Deep dives into what the current ETF flows as well as the Bitcoin halving mean for market participants.
Spaces are limited—secure your spot today: https://glassno.de/3W6aBgr
In this session, James and Ben will provide a comprehensive view of the metrics that matter most to institutional traders. They will share actionable insights on key topics, including:
- Correlations to traditional assets and the role of crypto in building diversified portfolios.
- Insights on where we are in the current market cycle and how it compares to previous cycles.
- Deep dives into what the current ETF flows as well as the Bitcoin halving mean for market participants.
Spaces are limited—secure your spot today: https://glassno.de/3W6aBgr
❤1
The Week On-Chain 17, 2024
The fourth Bitcoin Halving has occurred, leading to a 50% reduction in supply inflation and an inherent increase in issuance scarcity. In this edition, we explore the evolution of the Bitcoin network across Epochs with respect to price performance, and fundamental network metrics.
Executive Summary
- The Fourth Bitcoin Halving has occurred, reducing the annualized inflation rate of the Bitcoin Supply by 50%, and decisively surpassing Gold in terms of issuance scarcity.
- When measuring across Halving Epochs, diminishing growth rates are noted across multiple network statistics, whilst the absolute value of these measures continues to climb to new ATHs.
- Investor profitability has been bolstered by a rising spot price and a decisive ATH break, which has dampened the 50% reduction in revenue for miners relative to the start of the year.
Read more in The Week On-Chain newsletter.
The fourth Bitcoin Halving has occurred, leading to a 50% reduction in supply inflation and an inherent increase in issuance scarcity. In this edition, we explore the evolution of the Bitcoin network across Epochs with respect to price performance, and fundamental network metrics.
Executive Summary
- The Fourth Bitcoin Halving has occurred, reducing the annualized inflation rate of the Bitcoin Supply by 50%, and decisively surpassing Gold in terms of issuance scarcity.
- When measuring across Halving Epochs, diminishing growth rates are noted across multiple network statistics, whilst the absolute value of these measures continues to climb to new ATHs.
- Investor profitability has been bolstered by a rising spot price and a decisive ATH break, which has dampened the 50% reduction in revenue for miners relative to the start of the year.
Read more in The Week On-Chain newsletter.
Glassnodes's lead analyst James Check outlines the key themes shaping the digital asset landscape in 2024, in the latest episode of Coinbase Institutional's Market Call podcast.
Episode Highlights:
- Quarterly Analysis: Key insights from the report, focusing on BTC's role in strategic portfolio diversification.
- Bitcoin Halving Examination: Explore the expected impacts of the Bitcoin Halving on the mining industry and broader market.
- Macro Economic Context: Interest Rate Implications: Discuss how shifts in global interest rates could influence the cryptocurrency markets, with a comprehensive macroeconomic analysis.
We invite you to listen to the full podcast for more detailed discussions and subscribe for future episodes on Apple Podcasts: https://podcasts.apple.com/us/podcast/coinbase-institutional-market-call/id1705007171
Episode Highlights:
- Quarterly Analysis: Key insights from the report, focusing on BTC's role in strategic portfolio diversification.
- Bitcoin Halving Examination: Explore the expected impacts of the Bitcoin Halving on the mining industry and broader market.
- Macro Economic Context: Interest Rate Implications: Discuss how shifts in global interest rates could influence the cryptocurrency markets, with a comprehensive macroeconomic analysis.
We invite you to listen to the full podcast for more detailed discussions and subscribe for future episodes on Apple Podcasts: https://podcasts.apple.com/us/podcast/coinbase-institutional-market-call/id1705007171
Apple Podcasts
Coinbase Markets Podcast
Technology Podcast · Updated Weekly · Each week the Coinbase Institutional team brings you the latest news and insights to help you navigate the crypto markets.
Introducing: Glassnode's new suite of 28 cutting-edge on-chain metrics for Bitcoin and Ethereum. This suite provides a more granular, cohort-based view of some of the most important metrics in on-chain analysis, such as SOPR, MVRV and Realized Cap. Specifically, you can use this suite to gain detailed insights into how different coin age and wallet size cohorts are behaving, providing a deeper understanding of capital flows and market sentiment.
Key Features:
- Market Trend Identification: Analyze asset holding ages to detect early market movements.
- Volume Analysis: Optimize trading by evaluating volumes in profit or loss across different cohorts.
- Risk Assessment: Assess wealth distribution by holder age and wallet size for informed strategic decisions.
- Profit and Loss Signals: Our metrics enable detailed tracking of realized profit and loss by age and wallet size, providing clear signals for portfolio adjustments.
Discover more in our latest insights article below 👇
https://glassno.de/4dhudEL
Key Features:
- Market Trend Identification: Analyze asset holding ages to detect early market movements.
- Volume Analysis: Optimize trading by evaluating volumes in profit or loss across different cohorts.
- Risk Assessment: Assess wealth distribution by holder age and wallet size for informed strategic decisions.
- Profit and Loss Signals: Our metrics enable detailed tracking of realized profit and loss by age and wallet size, providing clear signals for portfolio adjustments.
Discover more in our latest insights article below 👇
https://glassno.de/4dhudEL
Currently, the unrealized profit held within the Bitcoin supply is the largest it has ever been moving into a Halving event (as measured by MVRV).
In other words, investors are holding the largest paper gains relative to their cost basis as of a halving date. With the MVRV Ratio is trading at 2.26, this means the average unit of BTC is holding a +126% paper gain.
Discover more in the latest Week On-Chain 👇
https://glassno.de/4b6Lu1h
In other words, investors are holding the largest paper gains relative to their cost basis as of a halving date. With the MVRV Ratio is trading at 2.26, this means the average unit of BTC is holding a +126% paper gain.
Discover more in the latest Week On-Chain 👇
https://glassno.de/4b6Lu1h