Bitcoin market is “like a calm bull”: Glassnode
A bull is not only the robust animal with big horns, it is also the term used to call bullish investors. And this is what is currently being seen in the bitcoin (BTC) market, although with some calm.
According to the most recent report from the analysis firm on-chain, Glassnode, the bitcoin market is currently like a “calm bull”. This is indicated based on the behavior of investors and price action.
The digital currency continues to consolidate in a range closer to the all-time high recorded almost three months ago of $73,700 (USD), as the chart shows. This occurs while seeing that long-term investors bitcoin have shown a change in behavior.
“Selling pressure from long-term holders has cooled significantly, and investors have returned to accumulation patterns, suggesting that volatility is required to motivate the next wave,” he clarifies.
As seen below, it stands out that Long-term investors begin to accumulate coins again for the first time since December 2023. Glassnode views this as a result of the significant selling pressure these holders unleashed when bitcoin hit the all-time high price.
Along with this, the analysis distinguishes that spot bitcoin exchange-traded funds (ETFs) in the United States have also experienced a clear resurgence in demand. They recorded capital inflows again after four weeks of outflows.
In addition, it mentions that there has been a leveling of the playing field between Bitcoin and Ethereum, with the approval of spot ETFs in the United States of ether (ETH). “This further cements the growing adoption of digital assets across the traditional financial system, and is a huge step forward for the industry,” he maintains.
The Bitcoin Euphoria Phase Still Looks Young
Glassnode notes that as the market moves towards a new all-time high and price discovery, it enters the “euphoria phase.” He explains that, in this stage, bitcoin supply in profits starts fluctuating around 90% level for 6 to 12 months.
“The current euphoria phase is relatively young, but it has been active for about 2.5 months, with 93.4% of the supply in profits,” he mentions. This can be seen in the following graph, which reinforces its bullish projections for the current cycle.
For Ki Young Ju, CEO of on-chain data firm CryptoQuant, There is currently the same “vibe” in the bitcoin market as in mid-2020. He attributes this to the low price volatility amid the significant increase in new whales (investors with more than 1,000 BTC). This can be seen below.
In this way, the new whales reflect that large investors are behaving like bulls while the price remains calm. If they continue to exert buying pressure, they will be able to complete this consolidation stage with an upward breakout.
However, as CriptoNoticias reported, if interest rates remain high in the United States, the demand for risk assets, such as stocks, as well as bitcoin and cryptocurrencies, could be discouraged. For this reason, currently, eyes are on the next inflation report and the decision that the Federal Reserve (Fed) will make in this regard on June 12.
