Bitcoin Hodler Supply Reaches ATH, But Quiet Period Ahead

Crypto and Bitcoin markets are heading for a lull interval if the on-chain exercise is something to go by. In its final weekly on-chain report for the 12 months, analytics supplier Glassnode reported that Bitcoin annualized realized volatility has been the bottom since October 2020.

The metric matches comparable low volatility ranges on the earlier cycle backside in late 2018.

• Futures volumes are additionally severely depressed at multi-year lows, it stated, including:

“This exhibits the huge impression of tightening liquidity, widespread deleveraging, and the impairment of many lending and buying and selling desks within the house.”

• The FTX implosion has doused the fires of futures markets, and open curiosity (OI) has slumped because of this. OI is a measure of the variety of futures or choices contracts which can be held by merchants and traders in lively or open positions.
• Leverage ratios have additionally fallen, which is usually factor for crypto markets as a lot of the leveraged positions have been flushed out. What stays are hodlers and traders, not speculators and margin merchants.
• Because the document realized revenue on the peak of the 2021 bull market, there have been $213 billion in realized losses. This equates to 46.8% of the bull income, a really comparable determine to the 2018 bear market, which noticed 47.9% in returned realized losses.
• Nonetheless, the long-term holder provide has reached an all-time excessive of 13.9 million BTC.

“Regardless of these spectacularly massive losses, the age of the coin provide, and propensity for HODLing by those that stay continues to rise.”

• Glassnode concluded with what we already know: 2022 was a brutal 12 months. It has pushed volatility and volumes to multi-year lows as liquidity and hypothesis dries up, it added.
• Nonetheless, “traders look like stepping in with growing coin quantity on every worth leg down,” it said.