- Bitcoin volatility will skyrocketed in the near future, predicted Glassnode.
- The investors’ confidence level is much higher than in 2019-2020 and 2021.
- Glassnode noted that the market is in a “unique period of equilibrium.”
Bitcoin (BTC), the world’s leading digital asset by market cap, has surpassed the $67,000 price level as of this writing and climbed as high as $67,880 in the past 24 hours. Interestingly, blockchain analysis firm Glassnode reports that BTC will become more volatile in the near future as investor confidence is currently higher than it was in the 2019-2020 and 2021 markets.
Glassnode Analyzes Bitcoin Market Trends
In an analysis titled “The Eye of the Storm,” Glassnode stated that Bitcoin is seeing $0.73B in new capital flowing into the network daily, significantly lower than the $2.97B peak seen in March. The firm says it has yet to record a second wave of capital inflow and demand surge after March, when Bitcoin hit a new all-time high of $73,750.
However, Glassnode also noted that Bitcoin’s “liveliness metric” is trending downward, meaning that market participants are hodling onto their supply and are unwilling to sell their holdings. This is a bullish indicator for BTC, suggesting that the volatility of the leading digital asset will surge soon.
Glassnode also pointed out a few concerning points and concluded that the market is in a “unique period of equilibrium,” stating:
“We have not yet seen a sharp and sustained surge in new demand, typically accompanied by cycle peaks. Similarly, we have not started to experience a rise in HODLing pressure, which has historically been witnessed throughout deep bear markets.”
It is important to note that investor profitability has not declined, which Glassnode says indicates that “there is limited financial pressure and fear experienced by Bitcoin holders, making a descent into a deep bear market less likely at this time.”
Bitcoin Price Surge
Bitcoin jumped by more than 6% on Monday and reclaimed the $66,000 price level, a major area of resistance that the cryptocurrency has failed to turn into support. If the digital asset manages to stay above $66,000, the $70,000 price level will likely be the next target.
Read also: Crypto’s 2024 Winners: Sui, Bitcoin, Solana, and Ethereum Surge
As per CoinMarketCap, Bitcoin is up 2.74% in the past 24 hours, 7.59% in the last week, and 14.64% in the past 30 days. Moreover, since October 2023, the leading cryptocurrency has surged a massive 142.03%.
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