Crypto exchange volumes reflect ‘diminished trading interest’ from Bitcoin traders – Glassnode
Bitcoin (BTC) continued its recovery on September 10, trading at $58,000, up 8% from a four-week low of $53,955. Despite this recovery, Bitcoin investors “remain unconvinced” in the short term, according to an analysis from Glassnode.
According to a September 10 report published by Glassnode, investors are dealing with “contract volumes across the board” with central exchanges (CEXs).
The report notes that CXs remain key indicators of investor speculation and price gains in the ever-evolving cryptocurrency market. They reviewed onchain volumes collected on CEXs to determine investor activity and speculative appetite.
Running the same 30d/365d momentum crossover for exchange-related inflows and outflows, market data pointed to a firm monthly moving average down year-over-year.
“This indicates a decrease in investor interest and less trading in the current price range for speculations. “Bitcoin Exchange Rate Velocity. Source: Glassnode
Glassnode believes the recent market downturn has slowed market activity. Applying the 90d MinMax scalar metric to assess spot trading volume on 90d MinMax scalar exchanges, analysts found that spot volume in CEXs continued to decelerate.
“This adds more weight to the suggestion that there has been a significant decline in business activity over the past quarter.”
Also using the CVD metric—the net balance between market buys and sells that estimates pressure in spot markets—Glassnode also noted that increased selling pressure from investors over the past three months “contributed to a downward tilt in price action.”
Bitcoin CEX Place CVD. Source: Glassnode
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Declining investor appetite is also visible in the institutional landscape, with spot Bitcoin exchange-traded funds (ETFs) “showing net outflows,” the report noted.
“Net capital is moving into place in dollar terms. Bitcoin ETFs will soften starting in August 2024 and are now reporting $107 million inflows per week.” US spot Bitcoin ETF net flows. Source: Glassnode
This is confirmed by data obtained by Farside Investors, which shows that the US-based space Bitcoin ETFs saw net inflows of $1.186 billion between August 27 and September 6, with a record low of $28 million recorded on September 9.
Additional data from CoinShares shows that outflows from Bitcoin investment products reached $643 million at the end of September 6.
CoinShares said last week it increased the likelihood of a 0.25% interest rate cut by the US Federal Reserve on negative sentiment fueled by stronger-than-expected macroeconomic data.
According to the trading company QCP Capital, the US consumer price index expected on September 11, together with the first presidential debate between the candidates Kamala Harris and Donald Trump, can see the return of Bitcoin volatility.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
