As reported by Glassnode, Bitcoin is undergoing adjustments to settle within its new price territory, with liquidity conditions tightening, while the Long-Term Holder segment remains dormant.

The cryptocurrency analytics firm has recently taken to social media platform X to share their latest observations regarding Bitcoin, revealing that the market is still in the adaptation phase after facing a significant -30% correction. Additionally, liquidity conditions are tightening in both the spot and futures markets. Glassnode Moreover, the inactivity among Long-Term Holders is compounded, leading to a market that is sluggish and where price movements are largely horizontal.

Glassnode's recent analysis indicates that the digital asset marketplace has been under pressure lately, noting that Bitcoin's price has slipped from roughly $97,000 in late February to around $82,000 now. This trend points to a significant decrease in liquidity which is putting downward pressure on asset valuations. Furthermore, net capital inflows into the sector are dwindling, with the Realized Cap showing a modest 0.67% increase per month.

From these observations, Glassnode derives two key insights: first, the flow of fresh capital into the market is insufficient to uphold higher valuations. Second, there remains a heightened expectation of volatility as the market transitions from a phase of profit-taking to a more neutral stance. Bitcoin The portion of wealth held by the Hot Supply cohort, which consists of Bitcoin that is under a week old, has seen a stark decline from 5.9% of the total circulating supply down to 2.8%. This sharp drop reflects diminishing interest in rampant trading and speculation.

A similar decline can be seen in the volume of inflows to exchanges, which are key players in trading activities. Inflows to exchanges have fallen from +58.6k BTC per day at the peak of the market to just +26.9k BTC, marking a reduction of over 54%. This decrease aligns closely with the dip in investor sentiment and a slowdown in market capital flows. Furthermore, the reductions in both Hot Supply and Exchange Inflows indicate weakening demand from the market's buying side.

The cryptocurrency market persists in adjusting to a newly defined price range following a significant 30% decrease, with liquidity conditions contracting in both the traditional and futures trading arenas.

Simultaneously, the derivatives market has emerged as the leader in trading volumes across all sectors. However, open interest in futures contracts has seen a downturn recently. This figure has plummeted from $57 billion at the market's peak to the current level of $37 billion, representing a -35% decrease. Such a trend implies a fall in both speculation and hedging activity, mirroring diminishing engagement seen within the on-chain space.

Short-Term Holders are currently dealing with losses, contrasting with the more patient approach exhibited by Long-Term Holders who have refrained from selling.

A detailed review of the Long-Term Holder distribution reveals a transient spike in the amount sent to exchanges as the market faced a downturn in the low-$80,000 region. This indicates that some longer-term investors have chosen to mitigate risks by cashing out profits. Nonetheless, the occurrence and scale of distribution spikes seem to be declining, suggesting that Long-Term Holders are nearing the conclusion of their selling activities within this price bracket.

Glassnode remarks that, unlike previous cycles, Long-Term Holders have realized profits at levels comparable to earlier market phases, signaling that the market has absorbed a significant amount of selling pressure. Still, it’s worthwhile to recognize that Long-Term Holders possess a substantial portion of the market's total wealth, especially in this mature stage of the cycle. This situation could lead to intriguing market dynamics, given that a considerable amount of capital remains closely held.

It's important to keep in mind that the information presented here is not designed to serve as or be viewed as legal, tax, investment, financial, or any other form of advice. Always invest only what you can afford to lose and seek independent financial guidance if needed. For further details, we recommend reviewing the terms and conditions alongside the help and support resources provided by the issuing or advertising party. MetaversePost aims for accuracy and impartiality in reporting, but market conditions can change without prior notice.

Alisa, a passionate journalist at Cryptocurrencylistings, focuses on cryptocurrency, zero-knowledge proofs, investments, and the vast realm of Web3. With a sharp awareness of rising trends and technologies, she provides in-depth coverage to keep readers informed and engaged in the fast-changing world of digital finance. increased volatility Blum is marking a significant milestone, celebrating its one-year anniversary with accolades for 'Best GameFi App' and 'Best Trading App' at the Blockchain Forum 2025.

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