Another Striking Finding in Glassnode Report: Bitcoin’s Quietest Period Since 2019
According to Glassnode data, Bitcoin spot trading volume has dropped to its lowest level since 2019, while futures yields falling below US Treasury yields are driving institutional investors toward cash assets.
As the cryptocurrency market attempts to understand the reasons behind the stagnation in the price of the leading asset, Bitcoin, a report published by on-chain data platform Glassnode revealed striking facts. Current data shows that a wait-and-see strategy prevails among both retail and institutional parties, with liquidity shifting toward safer havens. This situation significantly dampens the overall trading appetite in the market.
According to the report, Bitcoin spot trading volume has dropped to as low as 60,000 (BTC) daily, entering its quietest period since 2019. The primary macroeconomic factor behind this stagnation is that the yields offered by futures are losing their appeal. Since February, the three-month futures basis yield has been trending below the US two-year government bond yield. This inversion, occurring for only the second time in history for such an extended period, is causing institutional capital to shift away from risky assets and toward cash and government bonds, which are seen as safe havens.
Critical Resistance in Bitcoin Price and Institutional Liquidity
On the price side, Bitcoin is stuck in a dense cost cluster between $62,000 and $68,000. Analysts emphasize that the $69,000 level is the most critical resistance point that needs to be overcome. Charts shared by Glassnode show that spot volumes are trending near the bear market lows of 2023, indicating that there is no real explosion in demand in the market.
The Glassnode model currently continues to signal “Risk Off” for the market. While the current market cycle is recorded as the shallowest bear market in history in terms of price drawdown, it is noted that more time is needed to confirm a bottom formation in terms of duration. For institutional liquidity to return to the cryptocurrency market, the balance between bond yields and Bitcoin yields is expected to be restored.