Glassnode: Bitcoin Investors Hit an All-Time Low in On-Chain Spending

According to Glassnode, the cryptocurrency market, including Bitcoin and altcoins, continues to show minimal activity, with on-chain investor engagement reaching an unprecedented low.

In its weekly market update released on August 14th, on-chain analytics provider Glassnode addressed the subdued market conditions, reporting a lack of significant developments. Last week, markets showed minimal movement, resulting in record-low volatility. This has led to what Glassnode describes as a state of “extreme apathy and exhaustion” in the Bitcoin market. The update also noted that both volatility and key on-chain indicators have reached historic lows.

The report highlighted the prevailing reluctance of investors to spend their coins on-chain, indicating a record-low level of willingness to transact. Current conditions in the bitcoin market resemble the aftermath of bear market periods in previous cycles, with a notable concentration of assets held by long-term, convinced holders.

Read more about the Glassnode report on the cryptocurrency market and find other interesting business news with the Born2Invest mobile app.

Glassnode report highlights

Glassnode’s analysis pointed out that despite over $16 billion in inflows into Bitcoin this year, inflows have remained relatively low compared to previous cycles. This inertia could be exacerbated by the fact that a significant majority of Bitcoin holders still hold positions that are underwater, creating potential resistance to market recovery.

The report also highlighted growth in the supply of long-term holders, reaching a high of 14.6 million BTC. In contrast, short-term holder supply fell to a multi-year low of 2.56 million BTC. This pattern suggests that bitcoin investor conviction remains high, as very few seem willing to liquidate their holdings.

The Fear and Greed Index, currently at 53, has remained neutral for an extended period of time, showing little movement in either direction. Despite the overall stability of the market, some negative factors remain. The United States remains in regulatory disputes with the cryptocurrency industry, the lawsuit against Ripple is still ongoing, and the possibility of an economic recession in the country could lead to lower investment in risky assets.

The current outlook for the cryptocurrency market remains subdued, as evidenced by the lack of significant changes this week. Total market capitalization has remained at $1.2 trillion over the past five months. Bitcoin is trading unchanged at $29,350 at the time of writing, and Ethereum’s value is stagnant at $1,840.

Despite this stagnation, the market has still seen a 46% increase in value since the beginning of the year, indicating that the downward phase is over. However, analysts who predicted a new all-time high for Bitcoin around halving in eight months now consider such an outcome unlikely.

__

(Featured image by TheDigitalArtist via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in  COIN KURIER. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.