has provided insights into why the Bitcoin price recently dropped below $70,000. The platform suggested that the flagship isn’t yet seeing enough demand, which could send its price to new highs.
Demand For Bitcoin Is Still Modest
In one of its latest market , Glassnode mentioned that “the rate at which new capital is flowing into the Bitcoin network has slowed down considerably from its peak.” They made this assertion based on the Realized Cap metric, which measures the value of each Bitcoin based on the last time it was traded. claimed that Bitcoin’s Realized Cap is currently at $574 billion.
The platform further revealed that the injection of liquidity into Bitcoin has cooled off since the flagship crypto hit an of $73,750. This is in stark contrast to the period before Bitcoin hit that ATH, with Glassnode noting that the flows into Bitcoin back then were “extremely sharp, culminating at a value of $3.38 billion daily.”
Meanwhile, Glassnode stated that the “remains in positive profit-dominated territory and is returning towards an equilibrium position.” However, they noted that Bitcoin’s modest demand was still able to spark this recent rally thanks to the “declining sell-side headwinds from mature investors.”
Basically, Glassnode suggested that things were looking up for Bitcoin but that it could be way better if there were more capital inflows. There could indeed be an increase in capital inflows soon enough, considering that the Spot Bitcoin ETFs have broken their and are once again recording into their funds.
from Farside Investors shows that these funds have already seen almost $700 million in net inflows this week. Specifically, these Bitcoin ETFs recorded a net inflow of $305.7 million on May 21 alone. That day was also most profitable day yet, with the fund taking in $290 million.
Some Positive Key Takeaways
Glassnode also assessed some other , which provided some positives for Bitcoin’s future trajectory. The platform noted that there has been a “large decline” in Bitcoin’s Sell-Side Risk Ratio, which “suggests the market has found a over the course of this correction.”
To assess market volatility, they also measured the percent range between the highest and lowest price ticks over the last 60 days. They concluded that “volatility continues to compress to levels typically seen after and prior to large market moves.”
Meanwhile, Glasnode revealed that 2.14M BTC out of the supply, currently at 3.36M BTC, fell into an unrealized loss following the recent market correction. They claim that this suggests that many of the BTC held by this category of investors are held at an unrealized loss, which reduces the risk of top-heaviness developing.