- Recent weeks witnessed heightened volatility in the market.
- Bitcoin surged towards the $50,000 mark amidst the turbulence.
- However, uncertainty and the looming possibility of sell-offs remain prevalent.
- Glassnode's MVRV ratio signals a concerning "high risk" landscape, hinting at potential profit-taking among long-term holders.
- Contrary data suggests that long-term investors might not be inclined to sell despite the risk.
- Grayscale holds a contrasting view, advocating for Bitcoin ETFs to lure in fresh investors and counterbalance miner selling post-halving.
Bitcoin is currently encountering resistance near the $49,000 mark but is inching closer to the significant $50,000 threshold amidst heightened volatility in recent weeks, as indicated by various metrics.
Market analysis suggests that Bitcoin may be on the cusp of entering the next phase of a bull market, supported by insights from Glassnode indicating increased attention and activity among long-term holders. However, this potential upward momentum is tempered by concerns of a looming sell-off and market uncertainty.
Glassnode's assessment, particularly through the MVRV ratio, suggests that Bitcoin is treading in a "high-risk" territory, indicating that long-term investors have accrued significant profits and could potentially initiate profit-taking actions. Despite this, indicators such as supply profitability and net unrealized profit/loss suggest that many investors are holding onto their positions, possibly in anticipation of further price appreciation.
Another factor influencing Bitcoin's future trajectory is the emergence of exchange-traded products (ETPs), particularly Bitcoin ETFs, which are anticipated to play a pivotal role in shaping the market dynamics, especially leading up to the upcoming halving event in April 2024.
The impending halving event, coupled with the influence of ETFs, has already begun to impact Bitcoin's price dynamics. Although the cryptocurrency recently flirted with the $50,000 mark, it faces resistance around the $48,969 level, with potential support seen around the 20-day EMA at approximately $44,557.
While Bitcoin appears poised for a potential breakout above $50,000, the possibility of a rejection at current levels necessitates caution, highlighting the inherent volatility and speculative nature of cryptocurrency investments. As always, investors are advised to conduct thorough research and exercise prudence in their financial decisions.

#Bitcoin #BTC #Glassnode #grayscale #cryptocurrency
$BTC

Bitcoin continues to be a hot topic in the world of finance, with its supply distribution being closely monitored by experts and critics alike. According to a recent report by Glassnode, BTC ownership is being dispersed over time, and is much less concentrated than previously reported. The report provides an update on the growth and contraction of supply held by defined entity cohorts, and provides remarks on the distribution of the circulating supply as it stands today.

The report states that an increasingly large proportion of supply is held by smaller entities, such as Shrimps (< 1BTC) and Crabs (< 10 BTC), which have absorbed a remarkable 2.25x more coins than were mined in 2022.

Institutional adoption post March 2020 is visible on-chain across several wallet cohorts, with balances showing signs of being increasingly market-driven (i.e. swelling/contracting with price). Entities with a balance between 10 and 1k BTC are absorbing coin volumes equivalent to 100% of issued coins in 2022.

The report also indicates that exchange reserves continue to deplete in aggregate, especially following the collapse of FTX. This is a combination of both renewed demand for self-custody, but also the expansion of institutional and collaborative custody solutions, and exchange-traded products like GBTC.

To better understand the distribution of BTC ownership, Glassnode divided network entities according to their Bitcoin holdings. The cohorts include Shrimps (<1 BTC), Crab (1-10 BTC), Octopus (10-50 BTC), Fish (50-100 BTC), Dolphin (100-500 BTC), Shark (500-1,000 BTC), Whale (1,000-5,000 BTC), Humpback (>5,000 BTC), Exchanges and Miners.

The report provides a summary of the state of the relative ownership of the Bitcoin supply approximately two years after the original article was published. The data shows that the smallest entities (Shrimps to Octopus) saw relative growth, while Whales, Miners, and Exchanges experienced the largest contractions in supply share.

In addition to assessing the change experienced by each cohort since February 2021, the report explores changes in the relative distribution of supply by way of a new metric, the Yearly Absorption Rate. This tool provides a relative measure of balance change relative to the volume of newly minted coins over the last year, providing insight into the level of expansion/contraction a cohort has experienced relative to new supply entering the market.

Overall, the report provides an in-depth analysis of BTC supply distribution and how it has changed over time. It highlights the increasing dispersal of BTC ownership, particularly among smaller entities, and the impact of institutional adoption and custody solutions on the distribution of BTC supply. The report serves as a valuable resource for those seeking to better understand the dynamics of BTC ownership and supply distribution.

#BTC #Bitcoin #Glassnode #crypto2023

This article was republished from azcoinnews.com