Data from the on-chain analytics firm Glassnode has revealed that around 9.5% of the Bitcoin supply changed hands above the $60,000 level. 1.87 Million Bitcoin Was Acquired At Price Levels Higher Than $60,000 In its latest weekly report, Glassnode has shared how the supply distribution of Bitcoin looks in terms of which levels the investors […]
On-chain data shows the Bitcoin Exchange Stablecoins Ratio has plunged to its lowest since March 2023. Here’s what this could mean for BTC. Bitcoin Exchange Stablecoins Ratio Has Been Heading Down Recently As explained by an analyst in a CryptoQuant Quicktake post, the Bitcoin Exchange Stablecoins Ratio has been declining recently. The “Exchange Stablecoins Ratio” […]
The positive Bitcoin Coinbase Premium that drove the latest rally above $70,000 has dissipated, suggesting buying has already slowed down. Bitcoin Coinbase Premium Gap Has Returned To Neutral Levels CryptoQuant Netherlands community manager Maartunn explained in a post on X that the Bitcoin Coinbase Premium Gap has declined back toward the neutral line. The “Coinbase Premium Gap” here refers to a metric that keeps track of the difference between the BTC prices listed on cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair). Related Reading: Bitcoin Sentiment Returns To Extreme Greed As BTC Breaks $71,000 When the value of this metric is positive, it means that the price listed on Coinbase is greater than that on Binance right now. Such a trend implies that the buying pressure on the former is higher than that on the latter platform (or alternatively, the selling pressure on there is just lower). On the other hand, a negative value can imply the selling pressure on Coinbase is higher than on Binance as the price of the cryptocurrency listed there is lower. Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Gap over the past few days: The value of the metric appears to have been close to the neutral line recently | Source: @JA_Maartun on X The chart shows that the Bitcoin Coinbase Premium Gap had taken to notably positive values as the latest upward push in the asset’s price had occurred. Since then, though, the metric has fallen, with its value approaching zero. It would seem that the buying pressure on the platform contributed to the surge. The fact that the rally has slowed since the metric returned to neutral levels may add further evidence. This isn’t unnatural for this year, however, as the Bitcoin price and Coinbase Premium Gap have shown a pretty tight relationship since the start of 2024. Coinbase is popularly known as the preferred platform of American institutional investors, while Binance hosts more global traffic. As such, the premium’s value provides insight into how the behavior of the US-based large holders differs from that of world users. Since the Coinbase Premium Gap has been the driver of the recent price surges, buying from these institutional entities could potentially have provided the fuel. Related Reading: Bitcoin Top In Yet? What The Legendary MVRV Ratio Says As the indicator’s value has now neared the neutral mark, it would imply that these whales have lifted their foot off the gas. Given the close relationship the metric and BTC price have held recently, it may be worth keeping an eye on how things develop in the coming days. BTC may register some decline if the premium flips into the red from here. Naturally, a continuation of positive values would be a bullish sign instead. BTC Price At the time of writing, Bitcoin is trading around the $70,100 level, up more than 11% over the past week. Looks like the value of the asset has been going up over the last few days | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, CryptoQuant.com, chart from TradingView.com
Here’s what the latest trend in the Bitcoin Market Value to Realized Value (MVRV) ratio suggests about where the market is currently in terms of a top. Bitcoin MVRV Ratio Has Seen A Decline To The 2.34 Level According to data from the market intelligence platform IntoTheBlock, the BTC MVRV ratio surged high earlier this year as the cryptocurrency rally took place. The “MVRV ratio” is a popular indicator that tracks the ratio between the Bitcoin market cap and the realized cap. The former is simply the total valuation of the asset’s supply at the current spot price, while the latter is an on-chain capitalization model. Related Reading: Bitcoin Long-Term Holders & Price Top: Glassnode Reveals Pattern The realized cap measures the total sum of the value of the cryptocurrency’s supply, assuming that each coin in circulation has its true value at the price at which it was last transferred on the blockchain rather than the current spot value. One way to interpret the realized cap is that since it takes into account the buying price of every token in circulation (assuming that the last transaction of every token was indeed the point at which it last changed hands), it essentially sums up the total capital the investors have invested in the asset. As such, the MVRV ratio tells us how the total value that Bitcoin investors are carrying right now (that is, the market cap) compares against the value they put in (the realized cap). Now, here is a chart that shows the trend in the Bitcoin MVRV ratio over the past few years: Looks like the value of the metric has been turning down in recent days | Source: IntoTheBlock on X As is visible in the graph, the Bitcoin MVRV ratio has had a value greater than 1 for a while now. When the indicator has such values, the market cap is greater than the realized cap, and hence, the investors carry net profits. With the latest rally in the asset, this indicator has surged to relatively high levels, a natural consequence of the holders’ profits ballooning up with the price surge. After the recent drawdown in the price, though, the MVRV ratio has also turned itself around, as it’s now heading down. At present, the ratio has a value of around 2.34. “Traditionally, an MVRV ratio above 3 has been a reliable marker for predicting price peaks,” notes IntoTheBlock. So far, in the current rally, the metric hasn’t crossed this mark. It did come close recently, but the latest decline has meant it has gained a bit more distance to the level. Related Reading: This Bitcoin Halving May Not Result In Supply Squeeze: Glassnode Why have tops historically occurred at high values of the Bitcoin MVRV ratio? The answer is that investors in profits are more likely to participate in selling, and this temptation to take profits only increases as their gains grow larger. Because of this, selloffs are most probable when the market is holding extreme levels of profits, which is exactly what high MVRV ratio values reflect. BTC Price At the time of writing, Bitcoin is trading at around $67,200, up 3% over the past 24 hours. The price of the asset appears to have rebounded over the last few days | Source: BTCUSD on TradingView Featured image from Yiğit Ali Atasoy on Unsplash.com, IntoTheBlock.com, chart from TradingView.com
On-chain data indicates that Bitcoin had retested a historically relevant line right before the latest recovery had come. Bitcoin Adjusted SOPR Retested The 1.0 Level Prior To Recovery When Bitcoin was declining, the cryptocurrency had dropped to a low of $60,600, which appears to have been the bottom, at least so far, given that the […]
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