Bitcoin (BTC) Investors Express Doubt on Short-Term Outlook: Report by U.Today
U.Today – The latest on-chain data from Glassnode reveals that (BTC) investors are expressing doubts about the cryptocurrency’s short-term prospects.
This sentiment is reflected in the declining prices associated with on-chain exchanges, which indicate a cautious approach among market participants.
In a recent tweet, Glassnode noted that Bitcoin investors remain uncertain in the short term, as volumes related to on-chain transactions have begun to decrease.
Meanwhile, the central exchange continues to be a prime location for speculative activity and price discovery. Therefore, the evaluation of the on-chain volume collected in all these areas can be used to measure the activity of investors and the interest of speculation.
According to Glassnode, a 30/365-day crossover analysis of 365-day inflows and outflows related to the exchange showed that the monthly average volume has fallen significantly in less than a year. This highlights the decrease in investor demand and less trading by speculators in the current BTC price range.
The Bitcoin network is experiencing a decrease in payouts, even if the hashrate is increasing
This decrease in volume coincides with a decrease in payments on the Bitcoin network. The Bitcoin network currently processes and settles an estimated $6.2 billion worth of transactions per day.
However, the volume of payments is starting to decrease towards the annual average, which suggests a marked cooling of the network usage and its output. Overall, this remains a bad idea.
The CVD index, which shows the current net balance of market buying and selling pressure in the property market, shows increased investor selling pressure over the past 90 days, adding to the price decline.
Despite the strength of the BTC metrics, Glassnode noted that the Bitcoin Hash Rate is rapidly approaching new ATHs as competition in the mining space and their belief in the Bitcoin network increases.
At the time of writing, BTC is down 1.21% in the last 24 hours to $56,119.
This article was originally published on U.Today
