The latest report from Glassnode shows that speculative demand from Bitcoin investors is declining, as shown by neutral Futures Contract funding rates and slowing Capital into the market.
According to new on-chain analysis published by Glassnode , the Bitcoin market is entering a cautious phase as speculative demand from investors shows signs of cooling down.
The report shows that funding rates in the perpetual Futures Contract market have returned to neutral, indicating a balance between buyers and sellers. This is a sign that leveraged speculation is declining, regardless of Bitcoin's price movements.
In addition, volume and liquidation value in the Futures Contract market have also decreased significantly compared to the peak of Bitcoin in March. Net Capital inflows into the market have also slowed, indicating a balance between buying and selling forces.
Glassnode estimates the current net profit/loss of the market at just over $15 million per day, well below the $3.6 billion per day when Bitcoin peaked at $73,000.
The MVRV index, a measure of investors' unrealized profits, is currently hovering around its all-time Medium of 1.72. Historically, this has been a threshold that signals the transition between a bull and a bear market.
Notably, a significant portion of short-term investors have switched to long-term holdings after Bitcoin hit a new high. The number of Bitcoins held for three to six months now accounts for more than 12.5% of the total circulating supply, which is similar to the period between mid-2021 and the peak of the 2018 bear market.
Based on the above data, it can be seen that the current market sentiment is leaning towards caution. Investors need to pay close attention to the developments of the spot market in the coming time, because this will be the main driving force governing Bitcoin price fluctuations.
Follow Blockchain News to not miss any of the latest blockchain developments at the Blockchain Popularization Forum.
