📰 Table Of Contents
Bitcoin Market Analysis: A Closer Look at the Current State
This year’s significant crypto rally has been primarily fueled by the Bitcoin spot market, as highlighted in recent analysis by Glassnode. Let’s delve deeper into the insights provided by their report.
Bitcoin Spot Volume Trends
- Spot volumes reached a peak of $14.1 billion in March, reminiscent of levels observed during the 2020-2021 bull market.
- Currently, daily spot volumes have cooled down to around $7 billion in April.
- Bitcoin’s 30-day moving average for volume stands at $9.59 billion, significantly higher than the 180-day volume average of $5.95 billion.
Exchange Flows and Price Action
Net exchange flows, which include inflows and outflows from Bitcoin exchanges, have surpassed 2021 levels, now totaling $8.19 billion per day. This increase in exchange flows aligns with Bitcoin’s year-to-date price performance.
Impact of Bitcoin ETFs
Recent analysis suggests that spot ETFs contribute significantly to Bitcoin’s spot price, accounting for 30% to 50% of the major forces affecting market dynamics. The influence of Bitcoin ETFs is particularly noticeable on weekends, when on-chain spot volumes tend to decrease due to the funds not actively trading.
Market Dynamics and Price Trends
Exchanges have shown a taker-buy volume bias, with spot volume delta against maker-sell volume reaching $143.6 million last month. This contrasts with the net sell side bias observed in 2023. Despite Bitcoin breaking its 2021 all-time high in March, the market has seen minimal major pullbacks, indicating that the current bull market phase is still in its early stages.
Bitcoin Holder Base Analysis
Analysis of capital invested by short-term holders reveals that the balance between long-term holders and new demand is currently at 47%, higher than earlier in the year but not yet at peak levels. This suggests a relatively balanced distribution of capital within the Bitcoin holder base.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
