Bitcoin recovered to $58,000 on Sept. 10, 8% above its four-week low of $53,955. After this comeback, Glassnode says Bitcoin investors “remain unconvinced” in the near run.
Glassnode reported on Sept. 10 that investors are using CEXs less due to “contracting volumes across the board.”
In the ever-changing cryptocurrency market, CEXs remain key indications of investor speculative activity and price discovery, the paper concluded. They assessed investor activity and speculative appetite using CEX-aggregated onchain volumes.
Running a comparable 30d/365d momentum cross-over for exchange-related inflows and outflows, the market intelligence business found that monthly volume had dipped below annual.
This indicates a drop in investor interest and speculative trading in the present price range.BTC volume momentum. Source: Glassnode
Glassnode thinks the market pullback slowed activity. Using the 90d MinMax scalar measure to analyze exchange spot trading volumes, experts found that CEX spot volume momentum is decreasing.
“This supports the idea that trade activity has declined over the last quarter.”
Glassnode also observed that investor selling pressure has been rising over the previous three months, “contributing toward the downward tilt in price action.” The CVD statistic evaluates the net balance between market purchasing and selling pressure in spot markets.
The spot Bitcoin ETFs “exhibiting net outflows,” the research added, indicating declining investor demand across the institutional sector.
Since August 2024, USD capital flows into spot Bitcoin ETFs have weakened and are presently outflowing $107M/week.US spot Bitcoin ETF netflows. Source: Glassnode
Farside Investors data reveals that US-based spot Bitcoin ETFs lost $1.186 billion from Aug. 27 and Sept. 6, with $28 million inflows on Sept. 9.
Additionally, CoinShares data shows $643 million in Bitcoin investment product outflows in the week ending Sept. 6.
CoinShares ascribed this to negative mood caused by stronger-than-expected macroeconomic statistics from last week, which boosted the chance of a 0.25% US Federal Reserve interest rate decrease.
Bitcoin volatility may resurface after the first Presidential debate between Kamala Harris and Donald Trump and the US Consumer Price Index on Sept. 11, according to QCP Capital.
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