Bitcoin’s price drop below $70,000 is apparently due to lack of interest, Glassnode data shows

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Glassnode on-chain analytics platform provided insight into why Bitcoin is priced it recently dropped below $70,000. The platform suggested that the flagship is not yet in sufficient demand, which could result in its price reaching novel highs.

Bitcoin demand is still modest

In one of the newest markets reportsGlassnode mentioned that “the rate of new capital flowing into the Bitcoin network has slowed significantly from its peak.” They made this claim based on the Realized Cap metric, which measures the value of each Bitcoin based on the last transaction. Glass knot claimed that Bitcoin’s realized cap is currently $574 billion.

Source: Glassnode

The platform further revealed that the injection of liquidity into Bitcoin has stopped since the flagship cryptocurrency hit the market highest level ever (ATH) amounting to $73,750. This is a stark contrast to the period before Bitcoin hit ATH, with Glassnode noting that inflows into Bitcoin were “extremely sharp” at the time, reaching $3.38 billion per day.

Meanwhile, Glassnode stated that Completed Cap “remains in positive earnings-dominated territory and returns to an equilibrium position.” However, they noted that modest demand for Bitcoin was still able to drive this recent rally thanks to “downward sell-side tailwinds from mature investors.”

Essentially, Glassnode suggested that things are looking good for Bitcoin, but could be much better if there were more capital inflows. Indeed, there may be an enhance in capital inflows soon, given that Spot Bitcoin ETFs have broken through streak of net outflows and they record again impressive net proceeds to their funds.

Data from Farside Investors shows that almost $700 million of net flows have already flowed into these funds this week. Notably, these Bitcoin ETFs saw net inflows of $305.7 million on May 21 alone. It was that day too BlackRock’s iShares Bitcoin Trust (IBIT). the most profitable day in history – the fund earned $290 million.

Some positive key takeaways

Glassnode also rated others essential indicators in the chain, which provided some positive news for Bitcoin’s future trajectory. The platform noted that there was a “large decline” in Bitcoin’s sell risk factor, which “suggests that the market has found degree of balance during this correction.”

Bitcoin price 2
Source: Glassnode

To gauge market volatility, they also measured the percentage range between the highest and lowest price tags over the past 60 days. They concluded that “volatility continues to decline to levels typically seen thereafter long-term consolidations and before big market movements.”

Meanwhile, Glasnode revealed that 2.14 million BTC z Low Term Holder (STH) supply, currently at 3.36 million BTC, has suffered an unrealized loss due to the recent market correction. They argue that this suggests that much of the BTC held by this category of investors is at an unrealized loss, reducing the risk of top-tier developments.

Bitcoin price chart from
BTC price resumes rally | Source: BTCUSD on

Featured image created with Dall.E, chart from


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