Glassnode, a leading cryptocurrency analytics company, has unveiled a fresh report analyzing Bitcoin’s (BTC) recent price dynamics. The findings indicate that Bitcoin might be experiencing some weariness after the surge following the Federal Reserve’s FOMC meeting.
The data from Glassnode reveals that long-term holders (LTH) have recently capitalized on profits amounting to 3.4 million BTC. In contrast, inflows into ETFs, which were pivotal in supporting the recent uptrend, have noticeably diminished.
The analysis highlights notable weaknesses in both spot and futures markets, with $111,000 emerging as a crucial support level for short-term investors. The report cautions that failing to uphold this threshold could lead Bitcoin into a more profound correction phase.
Glassnode provided an overview of the current market conditions:
The rally post-FOMC was followed by typical selling pressure after major news events.
Despite only an 8% decline so far, total realized asset inflows reaching $678 billion and significant distribution by LTHs suggest signs of market maturation.
During the FOMC period, ETF demand—previously absorbing supply—dropped swiftly, creating instability in flow balance.
Spot trading volumes spiked amid sell-offs while futures experienced substantial deleveraging. Additionally, there was increased hedging activity within options markets as strong interest in put options became evident.
In its closing remarks, Glassnode described Bitcoin’s downturn following the FOMC meeting as characteristic of post-news corrections but noted an increasing resemblance to market fatigue overall. “The potential for further cooling persists if institutional demand and long-term holders do not achieve equilibrium,” stated Glassnode.
*This information is not intended as investment advice.