According to a recent report from Glassnode, it appears that the Bitcoin market is cooling off after several months of intense distribution pressure. Although actual foreign direct investment remains relatively weak, the movement in selling pressures linked to reduced volatility increases the likelihood of a significant change in the future.
The plan carried out highlights a reduction in new capital inflows.
In other words, high Bitcoin markets face selling pressure as high price levels push long-term holders to sell some of their cryptocurrencies. March and April saw long-term investors selling coins to meet new demand, leading to a decrease in supply of the last asset during 1 and 2.
However, investors who have owned Bitcoin for more than three years are on the rise, suggesting they are willing to wait for a higher price. According to current figures, more than half of all Bitcoins have not been recorded on-chain in the last two years.
The measure of binary long-term holder spending, which represents the distribution pressure of HODLers, saw a significant decrease in LTH supply in March as Bitcoin hit the $73,000 mark. In recent years, this form of distribution constraint has been greatly reduced, giving the market more freedom and less resistance.
On the other hand, the decrease in LTH was linked to an increase in the supply of STH, which are new players in the market. The high spread between LTH and STH supply reflects easing distribution pressure among older investors. Additionally, the Liveliness metric highlights this evolution where the Bitcoin network generates more coins per day than it destroys them.
The Bitcoin market records the last broadcast of the offer.
On the demand side, the cap hit is a metric exclusively used for on-chain analysis, which represents the total USD liquidity stored in Bitcoin. Currently, it is valued at $574 billion; this established limit indicates that the flow of new capital to developing countries has decreased.
After absorbing the latest supply distributed recently, the market uses the daily rate of change of the cap as an indicator of capital inflows. However, it is a market with a positive profit zone which gradually changes towards equilibrium.
Finally, the URPD metric, which gauges how close other coins are to the current price, highlights strong support slightly below the current spot price, with 15.9% of the total supply held at these prices. In contrast, only 1.1% of available supply is above the current spot price, suggesting that there are many price discovery benefits in the event demand persists for an extended period of time.
