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Since early June, Bitcoin seems to have gotten itself tangled up. Despite fierce resistance, the flagship crypto has still not managed to break through the $60,000 mark. This stagnation worries both seasoned investors and newbies. Today, let's dive into the heart of this worrying situation and analyze the key elements of the latest Glassnode report to understand the ins and outs of this crisis.

Bitcoin: A measured fall

Bitcoin has recently plummeted, recording a 26% drop from its historic peak to over $74,000. This decline, although significant, remains less deep than in previous cycles, as highlighted by the Glassnode report :

While significant, this downtrend has been notably shallower than previous cycles, highlighting a relatively robust underlying market structure. “.

In other words, Bitcoin market strength continues unabateddespite the current turbulence.

Short-term holders are particularly affected, with over 2.8 million BTC currently below their acquisition priceThis is a hard blow for these investors who see their profitability evaporate.

Total supply of bitcoins held by short-term investors – Source: Glassnode

However, Glassnode tempers: losses remain moderate compared to the total market size. The market structure appears to be changing, with a volatility in compressiona sign that Bitcoin is stabilizing as a mature asset.

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Crypto: Between influx of new investors and saturation

The crypto universe is not left out, with a massive influx of new investors from January 2024particularly thanks to the launch of cash ETFs. However, this initial enthusiasm was quickly dampened, creating an overabundance.

Glassnode's report notes:

Demand has plateaued, leading to a glut as fewer long-term holders take profits and fewer new buyers accumulate BTC. »

This situation has led to a market saturation, where more than 2.8 million BTC are below their base cost, marking the second occurrence in a year where More than 2 million BTC are “under water”.

Bitcoin Investors Suffer Short-Term Losses – Source: Glassnode

There financial pressure on short-term holders is palpable, but remains moderate in proportion to the total wealth invested.

Glassnode concludes: “ The losses recorded by this cohort remain fairly typical compared to previous bull market corrections. “.

In conclusion, while Bitcoin and the crypto universe are going through a tumultuous period, the strength of the market remains notable. The long-term outlook remains cautiously optimistic, with hopes of a recovery in demand to stabilize prices and restore color to the flagship crypto.

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