Cryptotelegraph
  • News
    • Bitcoin News
    • Ethereum News
    • Crypto News
    • Crypto Technology
    • Analysis
    • Blockchain News
    • Industry News
    • NFTs
    • ICO News
    • Press Releases
  • Market Cap
  • Exchanges
  • ICOs
  • Videos
    • Bitcoin Videos
    • Ethereum Videos
    • Altcoin Videos
    • Blockchain Videos
    • ICO Videos
  • Submit Press Release
    • Read Press Releases
  • Contact Us
No Result
View All Result
Cryptotelegraph.com
No Result
View All Result
Home News Bitcoin News

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

Andy K by Andy K
May 22, 2023
in Bitcoin News
Reading Time: 5 mins read
15.6k 157
0
Bitcoin On-Chain Data Shows Weak Baseline For 2023: Report
2.7k
SHARES
68.3k
VIEWS
Share on FacebookShare on Twitter

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.

Related Reading: Why Justin Sun’s Stablecoin USDD Is Struggling To Maintain Its Dollar Peg

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.

Related articles

US SEC Delays Decision on ARK 21Shares Bitcoin ETF Until Next Year

US SEC Delays Decision on ARK 21Shares Bitcoin ETF Until Next Year

September 27, 2023
Bitcoin Price Prediction: BTC Down 3% Amid SEC ETF Delays, US Lawmakers’ Advocacy, & Rate Hike Impacts

Bitcoin Price Prediction: BTC Down 3% Amid SEC ETF Delays, US Lawmakers’ Advocacy, & Rate Hike Impacts

September 27, 2023

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.

Related Reading: Bitcoin Price Struggles Above $17K, Why BTC Is Still In Bullish Zone

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 

Tags: bitcoinbtcglassnode

Read more from original website

Tags: bitcoinBTCGlassNode
Share1094Tweet684
Andy K

Andy K

Andy is a former Forex Trader who got involved in the crypto industry early January 2013. Since then Andy has been writing about cryptocurrencies and blockchain technology within various online crypto news publications. He is also one of the main contributors to Cryptotelegraph.com

Fun Fact : Despite other staff members helping themselves daily - Andy has a 'never-ending' container of 'Jelly beans' always sat on his desk, it's magic!

Related Posts

US SEC Delays Decision on ARK 21Shares Bitcoin ETF Until Next Year

US SEC Delays Decision on ARK 21Shares Bitcoin ETF Until Next Year

by Andy K
September 27, 2023
0

US SEC Delays Decision on ARK 21Shares Bitcoin ETF Until Next Year Source: AdobeStock/24K-ProductionThe U.S. Securities and Exchange Commission (SEC)...

Bitcoin Price Prediction: BTC Down 3% Amid SEC ETF Delays, US Lawmakers’ Advocacy, & Rate Hike Impacts

Bitcoin Price Prediction: BTC Down 3% Amid SEC ETF Delays, US Lawmakers’ Advocacy, & Rate Hike Impacts

by Andy K
September 27, 2023
0

Bitcoin Price Prediction: BTC Down 3% Amid SEC ETF Delays, US Lawmakers' Advocacy, & Rate Hike Impacts Bitcoin, the world's...

BTC Ordinals Craze Puts Miners in Dilemma: Glassnode

BTC Ordinals Craze Puts Miners in Dilemma: Glassnode

by Andy K
September 27, 2023
0

BTC Ordinals Craze Puts Miners in Dilemma: Glassnode PixabayA new Glassnode report says that Bitcoin (BTC) Ordinals are not displacing...

Texas State Dominates in Bitcoin Mining, Hosts 28.5% of US’s Hashrate: Report

Texas State Dominates in Bitcoin Mining, Hosts 28.5% of US’s Hashrate: Report

by Andy K
September 27, 2023
0

Texas State Dominates in Bitcoin Mining, Hosts 28.5% of US’s Hashrate: Report Source: PixabayThe U.S. state of Texas has become...

Bitcoin Gains Recognition As A Unique, Non-Replicable Digital Asset Following Chinese Court Report

Bitcoin Gains Recognition As A Unique, Non-Replicable Digital Asset Following Chinese Court Report

by Andy K
September 27, 2023
0

Bitcoin Gains Recognition As A Unique, Non-Replicable Digital Asset Following Chinese Court Report Source: WR.LILI/AdobeThe Shanghai Second Intermediate People's Court...

Load More

Discussion about this post

Partners

Crypto Prices

  • Trending
  • Comments
  • Latest
Blockchain | Hack Script 2020 GENERATES Unlimited 100% WORKING bitcoin hacked

Blockchain | Hack Script 2020 GENERATES Unlimited 100% WORKING bitcoin hacked

March 14, 2020
Blockchain unconfirmed transaction hack 100% Working! New proof!

Blockchain unconfirmed transaction hack 100% Working! New proof!

March 13, 2020
Blockchain Hack Script 2020 GENERATES Unlimited Bitcoin 100% WORKING bitcoin hacked

Blockchain Hack Script 2020 GENERATES Unlimited Bitcoin 100% WORKING bitcoin hacked

February 11, 2020
🔥 Forsage 🚀 (Fast and Furious) – Fully Decentralized Matrix program on Ethereum Smart Contract 🔥

🔥 Forsage 🚀 (Fast and Furious) – Fully Decentralized Matrix program on Ethereum Smart Contract 🔥

March 31, 2020
Ripple XRP Token

Ripple and XRP – The Convoluted Truth Behind XRP’s Creation

0
Bitcoin cash hard fork. BitcoinCash Hard fork (BCH Hard fork)

Bitcoin Cash ‘hard fork’ What you need to know about it

0
Crytotelegraph - Crypto News & Reviews - Bitcoin & Altcoins

Bitcoin price news: 10 year forecast shows bitcoin ‘WON’T DIE’ Latest BTC prediction

0
BAKKT Futures: BAKKT Warehouse & Bitcoin Exchange

Will Bakkt Send Bitcoin’s price skyrocketing?

0
US SEC Delays Decision on ARK 21Shares Bitcoin ETF Until Next Year

US SEC Delays Decision on ARK 21Shares Bitcoin ETF Until Next Year

September 27, 2023
Bitcoin Price Prediction: BTC Down 3% Amid SEC ETF Delays, US Lawmakers’ Advocacy, & Rate Hike Impacts

Bitcoin Price Prediction: BTC Down 3% Amid SEC ETF Delays, US Lawmakers’ Advocacy, & Rate Hike Impacts

September 27, 2023
BTC Ordinals Craze Puts Miners in Dilemma: Glassnode

BTC Ordinals Craze Puts Miners in Dilemma: Glassnode

September 27, 2023
Texas State Dominates in Bitcoin Mining, Hosts 28.5% of US’s Hashrate: Report

Texas State Dominates in Bitcoin Mining, Hosts 28.5% of US’s Hashrate: Report

September 27, 2023

Cryptotelegraph logo x 2




The Cryptotelegraph is a Crypto News Magazine ‘Startup’ that hunts high and low to compile the very latest crypto news and reviews from around the web, whilst at the same time producing thought provoking articles and interpretations surrounding the cryptocurrency market today!


Read More





Disclaimer

Information found on Cryptotelegraph is those of referring websites (or) writers quoted. It does not represent the opinions of Cryptotelegraph on whether or not to buy, trade, sell or hold any investments. You are advised to conduct your own research before making any investment decisions. Use all provided information at your own risk. Full disclaimer.

Crypto News

US SEC Delays Decision on ARK 21Shares Bitcoin ETF Until Next Year

Bitcoin Price Prediction: BTC Down 3% Amid SEC ETF Delays, US Lawmakers’ Advocacy, & Rate Hike Impacts

BTC Ordinals Craze Puts Miners in Dilemma: Glassnode

Texas State Dominates in Bitcoin Mining, Hosts 28.5% of US’s Hashrate: Report

Bitcoin Gains Recognition As A Unique, Non-Replicable Digital Asset Following Chinese Court Report

This New Tool Track’s Bitcoin’s Price Without Using An Exchange

Donations Welcome




Bitcoin Address : 3AhxNswMkD5tjJJ544NRCwWhCDXHJ5GTzq

Ethereum Address : 0x9627FB741C19e1a70E7006F2B0D0c26d14AA1816

Bitcoin Cash Address : qq93an6n9unnu496vpcx684zekkmn4yk6g79kllf7d

Litecoin Address : MKVphBBJkBbjSh4D6aFLds9XHE1rnS9iHW





© Copyrights 2017 - 2021 Cryptotelegraph.com. All Rights Reserved.

Contact    About    Privacy & Cookie Policy

No Result
View All Result
  • News
    • Bitcoin News
    • Ethereum News
    • Crypto News
    • Crypto Technology
    • Analysis
    • Blockchain News
    • Industry News
    • NFTs
    • ICO News
    • Press Releases
  • Market Cap
  • Exchanges
  • ICOs
  • Videos
    • Bitcoin Videos
    • Ethereum Videos
    • Altcoin Videos
    • Blockchain Videos
    • ICO Videos
  • Submit Press Release
    • Read Press Releases
  • Contact Us

© Cryptotelegraph.com

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.