Will Bitcoin Continue to Fall? Glassnode Report Reveals Significant Slowdown in Bitcoin BTC Demand

Will Bitcoin continue to fall? Glassnode report shows a significant reduction in demand for Bitcoin BTC! On-chain analytics firm Glassnode revealed in its latest weekly report that demand for Bitcoin (BTC) has slowed recently. Glassnode discusses the latest developments regarding Bitcoin’s BTC achieved cap in its new report. “Realized Cap” refers to BTC’s on-chain capitalization model, which calculates the asset’s value by assuming the value of each token in circulation is equal to the spot price at which it last moved on the blockchain.

Today, the editor of this website will share with you a detailed interpretation of the Glassnode report showing that the demand for Bitcoin BTC has slowed significantly. I hope you like it!

Since the last transfer of any currency on the network was probably the last time it changed hands, the price at that time can be assumed to be its current cost basis. Actual market capitalization is therefore the sum of the cost basis of the entire circulating supply.

In other words, this model represents the total amount of money investors use to purchase Bitcoin. Therefore, this indicator is used to track whether capital is flowing in or out of cryptocurrencies.

Here is a chart shared by Glassnode showing the trend of Bitcoin’s achieved caps over the past few years:

In recent months, the indicator’s Values ​​appear to have been rising Source: Glassnode’s The Week Onchain – Week 21, 2024.

As shown in the chart above, as Bitcoin BTC rises to new all-time highs (ATH), its realized upper limit has been in a sharp upward trend. This rapid growth naturally means that capital is actively flowing into the asset.

However, the indicator's trajectory has become less steep recently. It's still growing in value and new ATHs are being set, but it's clear that the growth is much smaller than before.

The report states: “Currently, the rate of new capital inflows into the Bitcoin BTC network has slowed significantly from its peak as the market digests the recently allocated supply.”

The chart below better reflects The recent changes in the rate of change of capital flowing into the industry.

It appears that the value of this indicator has declined rapidly recently|Source: Glassnode’s The Week Onchain – Week 21, 2024

When investors start with When net profits are sold, the realized cap increases because there is some demand to purchase the tokens at a higher price. On the other hand, when losses occur, the indicator decreases because tokens previously purchased with higher capital have been sold with lower capital, causing the total investment in the cryptocurrency to fall.

As the Bitcoin BTC Net Realized Profit/Loss chart shows, the market absorbed massive profits as it hit all-time highs. However, the indicator has cooled significantly since then, further pointing to lower demand in the sector.

Bitcoin BTC broke through the $71,000 level yesterday, but the asset appears to have fallen slightly today and is now back at $70,200.

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