• News
    • Bitcoin
    • Altcoins
  • NFT
  • Metaverse
  • Analysis
  • Regulation
  • Learn
  • Market Cap
What's Hot

Hitachi Leverages Metaverse and VR for Next-Generation Workforce Training

2023-09-25

What is NBA Top Shot? A Beginner’s Guide

2023-09-22

Upland and KABOOM! Unite to Address Playspace Inequity

2023-09-22
Facebook Twitter Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
Facebook TikTok Instagram YouTube
CryptoNewsMetaverse
  • News
    • Bitcoin
    • Altcoins
  • NFT

    U.S. IRS Considers Taxing NFTs Like Other Collectibles

    2023-03-21

    Meta Shuts Down NFT Project to Focus on FinTech and Content

    2023-03-14

    Solana’s Solend V2 Release, Is SOL Price $50 Next?

    2023-03-06

    Amazon NFT Marketplace To Reportedly Launch Next Month

    2023-03-06

    Blur Coin Under Fire As Allegations Of Wash Trading Emerge

    2023-03-01
  • Metaverse

    Hitachi Leverages Metaverse and VR for Next-Generation Workforce Training

    2023-09-25

    Upland and KABOOM! Unite to Address Playspace Inequity

    2023-09-22

    Decentraland Hosts the First Metaverse Architecture Biennale

    2023-09-20

    A Step Towards Global Medical Metaverse Collaboration

    2023-09-18

    Shandong Province Aims for 10% of Global Metaverse Market by 2025

    2023-09-11
  • Analysis

    DOJ Officially Seizes Over $456,000,000 Worth of Robinhood Shares Tied to FTX Founder Sam Bankman-Fried

    2023-01-08

    Mark Cuban Makes Prediction on Next Crypto ‘Scandal,’ Warns of Potential Implosion if Exposed: Report

    2023-01-08

    Binance Listings Cause Crypto Assets To Spike an Average of 41%: New Research

    2023-01-08

    Bitcoin Whales Unloaded BTC As Market Reversed and Parked Their Profits in This Crypto Asset Class: Santiment

    2023-01-07

    Crypto Analyst Predicts Breakout for AI-Focused Altcoin, Updates Outlook on Ethereum and Lido DAO

    2023-01-07
  • Regulation

    Ripple files motion to block SEC appeal attempt

    2023-09-04

    JP Morgan believes SEC will be forced to approve ETFs after losing case against Grayscale

    2023-09-03

    Ripple Files Motion To Oppose SEC Appeal Over Landmark XRP Ruling

    2023-09-03

    U.S. SEC Punts on Bitcoin (BTC) Spot Exchange-Traded Fund Approvals, Delays Decisions Until October

    2023-09-02

    Navigating the significance of legal opinions in the crypto sphere

    2023-09-02
  • Learn

    What is NBA Top Shot? A Beginner’s Guide

    2023-09-22

    What Are Bridges in Crypto? Cross-Chain Bridges, Explained – Cryptocurrency News & Trading Tips – Crypto Blog by Changelly

    2023-09-21

    SingularityNET (AGIX) Price Prediction 2023 2024 2025

    2023-09-18

    What Are Altcoins? Best Altcoins to Buy  – Cryptocurrency News & Trading Tips – Crypto Blog by Changelly

    2023-09-08

    Your Guide to the Digital World of ENS Domains – Cryptocurrency News & Trading Tips – Crypto Blog by Changelly

    2023-09-04
  • Market Cap
CryptoNewsMetaverse
Home»Bitcoin»Bitcoin On-Chain Data Shows Weak Baseline For 2023: Report
Bitcoin

Bitcoin On-Chain Data Shows Weak Baseline For 2023: Report

2023-01-10No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

Even though Bitcoin (BTC) and the broader crypto market are experiencing an upswing in the first days of the new year, on-chain data shows that the market remains in a deep slumber. As Glassnode explains in its latest report, the BTC price has shown historically low volatility over the past weeks.

And according to the on-chain data for Bitcoin, there is currently little reason to believe that the boredom in the market will change quickly. However, if a move does occur, it will likely be an explosive market move, as in previous cycles when volatility was extremely low.

To support this thesis, Glassnode cites Bitcoin’s realized volatility over the last month, which is at a multi-year low of 24.6%. As the chart below shows, there have been a few times in Bitcoin’s history when it has been this low. In most cases, BTC saw a rally after the market awakened; only in one case, in November 2018, did the price fall dramatically (-50%) lower.

Bitcoin 1-month realized volatility
Bitcoin 1-month realized volatility, Source: Glassnode

Bitcoin Network Usage Is Low

Also, the weak baseline for Bitcoin is identified by Glassnode in continued restrained network usage. While on-chain activity increased after the FTX collapse, the uptick briefly leveled off later. The monthly average of new Bitcoin addresses is approaching the annual average again.

The overall transaction value of the network is in free fall. While the daily transfer volume was still around $40 billion in the third quarter of 2022, it is currently only $5.8 billion/day. The value is thus back at the level before the bull year 2020.

According to Glassnode, this indicates a displacement of institutional capital. This is reflected in the fact that the share of transfers of more than $10 million has fallen from 42.8% before the collapse of FTX to only 19.0%. Glassnode states:

This suggests a significant lull in institutional sized capital flows, and perhaps a serious shaking of confidence occurring among this cohort. It may also reflect, in part, and sadly, an expulsion of the questionable capital flows associated with the FTX/Alameda entities.

One indicator of a breakout from boredom could be the inflows and outflows on exchanges. But again, Glassnode notes that the on-chain data does not yet signal any momentum for an explosive move. Bitcoin inflows are currently between $350 million and $400 million per day, a far cry from the billions seen in 2021-22, according to Glassnode.

Major Indicator Remains Bearish

According to the research firm, the Realized Cap is one of the most important metrics in on-chain analysis. Unfortunately, the metric currently gives BTC investors just as little hope for a change anytime soon. The Bitcoin Realized Cap has declined 18.8% since the all-time high, representing a net capital outflow of -$88.4 billion from the network.

“This makes for the second largest relative decline in history, and the largest in terms of USD realized losses,” Glassnode notes, pointing at the following chart. Only in 2011/2012, the bear market drawdown was worse by 24%.

Bitcoin Realized Cap
Bitcoin Realized Cap, Source: Glassnode

Concluding the report, Glassnode says:

[I]t is rare for such conditions to stick around for long. Past occasions where BTC and ETH volatility was this low have preceded extremely volatile market environments, with past examples trading both higher and lower.

At press time, the BTC was slowly grinding higher in the 1-day chart. The price stood at $17,268.

BTC USD
Bitcoin grinding higher, 1-day chart | Source: BTCUSD on TradingView.com

Featured image from Jievani Weerasinghe / Unsplash, Chart from TradingView.com 

Source link

Baseline Bitcoin Data OnChain report Shows weak
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

U.S. SEC Punts on Bitcoin (BTC) Spot Exchange-Traded Fund Approvals, Delays Decisions Until October

2023-09-02

Ex-SEC chair Jay Clayton says approval for a spot Bitcoin ETF is ‘inevitable’

2023-09-01

Approval of a Spot Bitcoin ETF in the US Is Inevitable, Says Former SEC Chair Jay Clayton

2023-09-01

FTX Founder Sam Bankman-Fried’s Highly-Anticipated Fraud Trial Could Be Delayed: Report

2023-08-31
Add A Comment

Leave A Reply Cancel Reply

Top Posts

What Elon Musk’s investment could mean for Twitter’s crypto plans

2022-04-05

Will Indonesia’s decision to tax crypto stifle local adoption?

2022-04-02

Somnium space cross chain compatibility is here!

2022-03-13

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, NFT, Metaverse and more.

We're social. Connect with us:

Facebook Instagram YouTube TikTok
Top Insights

Hitachi Leverages Metaverse and VR for Next-Generation Workforce Training

2023-09-25

What is NBA Top Shot? A Beginner’s Guide

2023-09-22

Upland and KABOOM! Unite to Address Playspace Inequity

2023-09-22
Get Informed

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
© 2023 Cryptonewsmetaverse.com. Designed by ProdigitalX.

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$26,345.000.48%
  • ethereumEthereum(ETH)$1,592.290.73%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.00-0.02%
  • binancecoinBNB(BNB)$211.331.23%
  • rippleXRP(XRP)$0.510.59%
  • usd-coinUSDC(USDC)$1.00-0.06%
  • Lido Staked EtherLido Staked Ether(STETH)$1,590.620.74%
  • cardanoCardano(ADA)$0.2469010.88%
  • dogecoinDogecoin(DOGE)$0.061061-0.02%