{"id":17639,"date":"2024-10-09T15:47:01","date_gmt":"2024-10-09T12:47:01","guid":{"rendered":"https:\/\/forklog.com\/en\/glassnode-warns-of-increased-volatility-in-cryptocurrency-market\/"},"modified":"2024-10-09T15:47:01","modified_gmt":"2024-10-09T12:47:01","slug":"glassnode-warns-of-increased-volatility-in-cryptocurrency-market","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/glassnode-warns-of-increased-volatility-in-cryptocurrency-market\/","title":{"rendered":"Glassnode Warns of Increased Volatility in Cryptocurrency Market"},"content":{"rendered":"<p>The cryptocurrency market may face heightened volatility due to liquidation risks and an uncertain macroeconomic landscape, according to Glassnode.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Following a 10% price correction, the <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> market has rebounded back to the $63k level in an attempt to reclaim the critical Short-Term Holder cost-basis.<\/p>\n<p>Discover more in the latest Week On-Chain below?<a href=\"https:\/\/t.co\/E3bufV5aaE\">https:\/\/t.co\/E3bufV5aaE<\/a> <a href=\"https:\/\/t.co\/BUFi1friu9\">pic.twitter.com\/BUFi1friu9<\/a><\/p>\n<p>\u2014 glassnode (@glassnode) <a href=\"https:\/\/twitter.com\/glassnode\/status\/1843690415050096914?ref_src=twsrc%5Etfw\">October 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Analysts noted that after one of the largest daily corrections since 2022, on October 1, Bitcoin fell by 3.7% to $60,000. Subsequently, bulls managed to push the price back to $62,500, aligning with the average acquisition cost for short-term investors.<\/p>\n<p>Experts warned that forming a new wave from this level could pressure recent buyers, especially given the challenging conditions of recent months.<\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"590\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/1-1246-1024x590.png\" alt=\"1-1246\" class=\"wp-image-242871\" style=\"width:840px;height:auto\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/1-1246-1024x590.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/1-1246-300x173.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/1-1246-768x443.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/1-1246-1536x885.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/1-1246.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: Glassnode.<\/figcaption><\/figure>\n<p>Experts cited the True Market Mean ($47,000) and Active Investor Price ($52,500) as medium-term benchmarks should the upward momentum be lost.<\/p>\n<p>Since the beginning of the year, prices have remained above these levels except for the <a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-falls-below-50000-as-ethereum-dips-under-2200\">sell-off on August 5<\/a>. This indicates a relatively stable market that supports demand during downturns, specialists explained.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"590\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/2-910-1024x590.png\" alt=\"2-910\" class=\"wp-image-242872\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/2-910-1024x590.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/2-910-300x173.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/2-910-768x443.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/2-910-1536x885.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/2-910.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: Glassnode.<\/figcaption><\/figure>\n<p>An analysis of the realized price profile in the context of <a href=\"https:\/\/u1f987.com\/en\/news\/utxo-management-how-to-prepare-your-bitcoin-wallet-for-a-bull-market\">UTXO<\/a> (URPD) showed that the current rate is within a large cluster of coins. In other words, small fluctuations could affect the profitability of a significant number of investors.<\/p>\n<p>Specialists explained that two major supply nodes are located at the True Market Mean and Active Investor Price levels. In close proximity are large &#8220;air gaps,&#8221; where very few coin transactions have occurred. These could potentially become areas of interest in the event of downward volatility.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;This paints a picture of a market on &#8216;fragile ground&#8217; with a large volume of supply that will be sensitive to the next major price movement,&#8221; <\/em>commented Glassnode.<\/p>\n<\/blockquote>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"618\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/3-513-1024x618.png\" alt=\"3-513\" class=\"wp-image-242873\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/3-513-1024x618.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/3-513-300x181.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/3-513-768x464.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/3-513-1536x927.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/3-513.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: Glassnode.<\/figcaption><\/figure>\n<p>Experts reminded that speculators determine the local trend, and the ratio of &#8220;profitable&#8221; to &#8220;unprofitable&#8221; coins is useful for identifying extremes in price dynamics.<\/p>\n<p>Currently, the corresponding ratio stands at 1.2, exceeding the 90-day average by more than one standard deviation. This indicates a positive rise in investor sentiment. A similar situation has formed with the MVRV indicator.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"590\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/4-326-1024x590.png\" alt=\"4-326\" class=\"wp-image-242874\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/4-326-1024x590.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/4-326-300x173.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/4-326-768x443.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/4-326-1536x885.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/4-326.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: Glassnode<\/figcaption><\/figure>\n<p>Experts emphasized that such conditions create incentives for profit-taking. Currently, this process remains relatively small compared to the moment of <a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-surpasses-72000-mark\">updating the <span data-descr=\"all-time high\" class=\"old_tooltip\">ATH<\/span><\/a> in March 2024.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"590\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/5-207-1024x590.png\" alt=\"5-207\" class=\"wp-image-242875\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/5-207-1024x590.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/5-207-300x173.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/5-207-768x443.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/5-207-1536x885.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/5-207.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: Glassnode.<\/figcaption><\/figure>\n<p>During the recent rally in the perpetual contracts market, open interest decreased by $2.5 billion due to short liquidations. The metric&#8217;s decline on the three leading perpetual exchanges did not exceed the threshold of 5%.<\/p>\n<p>Based on this, analysts warned of the market&#8217;s continued susceptibility to increased volatility due to the risks of mass forced position closures.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"590\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/6-151-1024x590.png\" alt=\"6-151\" class=\"wp-image-242876\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/6-151-1024x590.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/6-151-300x173.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/6-151-768x443.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/6-151-1536x885.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/6-151.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: Glassnode.<\/figcaption><\/figure>\n<p>Earlier, Glassnode noted the resilience of BTC-ETF holders amid the correction.<\/p>\n<p>Bitfinex recently pointed to a reduced risk of Bitcoin&#8217;s &#8220;sudden drop.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The cryptocurrency market may face heightened volatility due to liquidation risks and an uncertain macroeconomic landscape, according to Glassnode. Following a 10% price correction, the #Bitcoin market has rebounded back to the $63k level in an attempt to reclaim the critical Short-Term Holder cost-basis. Discover more in the latest Week On-Chain below?https:\/\/t.co\/E3bufV5aaE pic.twitter.com\/BUFi1friu9 \u2014 glassnode [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":17638,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1168,1146,1273,1150,1268],"class_list":["post-17639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-crypto-derivatives","tag-cryptocurrency-market-forecasts","tag-glassnode","tag-news-plus","tag-on-chain-analysis"],"aioseo_notices":[],"amp_enabled":true,"views":"16","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/17639","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=17639"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/17639\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/17638"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=17639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=17639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=17639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}