Glassnode Study Signals High-Risk Bitcoin Regime, Hints at Early Bull Market Stage
MARKET UPDATES
by Jamie Redman
6 hours ago
In the wake of the market’s recovery from the FTX collapse, a notable shift has occurred, pushing bitcoin into a high-risk regime, as indicated by the onchain analysis firm, Glassnode. The firm’s latest report notes that this regime typically signals a pivotal phase often preceding the onset of bull markets, where long-term investors begin to see a return to profitability.
Bitcoin Enters High-Risk Regime: A Precursor to Bull Markets
Glassnode‘s latest Risk Assessment Framework study introduces a nuanced approach to understanding bitcoin’s (BTC) market cycles through onchain data. By analyzing short-term and long-term risk cycles, the framework offers a data-driven model to gauge drawdown risks. The entry into a high-risk regime, as detailed in the report, marks a critical juncture typically observed at the commencement of bull markets.
This phase is characterized by increased profitability for long-term investors, reflecting a growing confidence in the market’s future trajectory. “As such, ‘High-Risk’ is defined as a point where the market is likely in a speculative bubble,” Glassnode’s research explains. “By contrast, ‘Low-Risk’ environments are considered those where much of the speculative excess has been cleared, and the market is more likely to be within a bottom formation pattern.”
At the core of Glassnode’s analysis are metrics like the MVRV Model and Mayer Multiple, which together delineate the market’s current risk status. These indicators highlight the deviation of bitcoin’s price from its long-term averages, presenting a methodical way to identify speculative bubbles and bottom formations.
The Glassnode researcher, known as Cryptovizart, says the recent elevation of these metrics into the high-risk category underscores the speculative nature of current market conditions, yet it historically aligns with the early stages of market recoveries. Additionally, the report emphasizes the role of investor behavior, particularly through the Percent of Supply in Profit and Net Unrealized Profit/Loss metrics.
These indicators provide insights into the potential for increased selling pressure and the overall sentiment of greed or fear among market participants. The current positioning within the high-risk domain suggests a cautious optimism, with a significant portion of the market holding coins accumulated at lower price points during the previous consolidation phase.
By assessing spending patterns and demand for block space, Glassnode further identifies shifts in market dynamics that precede major price movements. Currently, the high-risk indicators highlight an environment ripe with speculation, yet buoyed by a solid foundation of long-term investor profitability and renewed market activity. While caution remains paramount, the analysis underscores the inherent optimism among long-term investors, suggesting a strategic moment for market entry.
“These risk factors consider a wide set of data and investor behavior categories, helping to establish a framework for analysts and investors,” Glassnode’s report concludes. “Whilst each indicator can be used individually, the combination often provides a more comprehensive picture of the state of the market.”
What do you think about Glassnode’s study on bitcoin entering the high-risk regime? Let us know what you think about this subject in the comments section below.
TAGS IN THIS STORY
Bitcoin, Bitcoin (BTC), Crypto, Cryptocurrency, Glassnode Bitcoin, Glassnode Report, high risk, Onchain Study
Join our Bitcoin.com community
Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 8,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Bitcoin Soars Above $45K, Reaching 4-Week High Post Spot ETF Launch
Quantum Cats NFT Collection Jumps in Value, Dominates Secondary Market Trade Volume
MARKET UPDATES | 3 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons, Images via Glassnode
PREVIOUS ARTICLE
Court Filing Shows Genesis Settled With NYAG, Aims to End Crypto Lending Platform Dispute
NEXT ARTICLE
Craig Wright Denies Forging Documents in High-Profile Bitcoin Lawsuit
COMMENT
DISCLAIMER
More Popular News
Former Bitmex Chief Foresees Bitcoin Rising to $1 Million Amid Banking Bailout and Money Printing Surge
MARKETS AND PRICES | 2 days ago
Bitcoin Technical Analysis: BTC Bulls Charge Ahead Rising Above $47K
MARKETS AND PRICES | 2 days ago
Bitcoin Price Predicted to Exceed $77,000 This Year: Finder Panel
MARKETS AND PRICES | 2 days ago
Glassnode Study Signals High-Risk Bitcoin Regime, Hints at Early Bull Market Stage
MARKET UPDATES | 6 hours ago
Robert Kiyosaki's Stark Warning: World Economic Crash on Horizon, No Soft Landing Expected
ECONOMICS | 2 days ago
Dragon Year Awakening — Bitcoin Proponents Eye Bull Market Surge Amidst Zodiac Predictions
FEATURED | 1 day ago
Buy crypto
Sell crypto
I want to buy
Bitcoin(BTC)
How much?
USD
GET QUOTE
Automatically select best provider
Bitcoin.com in your inbox
Get the newsletter directly to your inbox
Sign up
In Case You Missed It
Court Filing Shows Genesis Settled With NYAG, Aims to End Crypto Lending Platform Dispute
After settling with the U.S. Securities and Exchange Commission (SEC), Genesis Global has reportedly reached an agreement to settle with the Office of the New York Attorney General. The official had accused the company, along with its parent company Digital… read more.
US Senators Slam SEC for Operating in 'Unethical and Unprofessional Manner' in Debt Box Case
The Latest
- ECONOMICS | 9 minutes agoRussian President Putin Discusses Dedollarization — Calls US Dollar Weaponization a 'Grave Mistake'
- ECONOMICS | 1 hour agoRobert Kiyosaki Predicts 'End of the American Empire' Similar to Roman Collapse
- DEFI | 3 hours agoDydx Foundation Receives $30M From Community Treasury to Propel Strategic Initiatives
- NEWS | 5 hours agoCraig Wright Denies Forging Documents in High-Profile Bitcoin Lawsuit
- MARKET UPDATES | 6 hours agoGlassnode Study Signals High-Risk Bitcoin Regime, Hints at Early Bull Market Stage
- NEWS | 8 hours agoCourt Filing Shows Genesis Settled With NYAG, Aims to End Crypto Lending Platform Dispute
- MARKETS AND PRICES | 9 hours agoNFT Sales Surge 16.8% This Week, Ethereum Dominates With Top Volumes
- LEGAL | 11 hours agoUS Senators Slam SEC for Operating in 'Unethical and Unprofessional Manner' in Debt Box Case
Press releases
Unveiling The Dragons: The World's First Token Amulets
Bitcoin Dogs Set To Make History With First Ever ICO on Bitcoin Blockchain
Memeinator Blazes Past $4M with Red Apple Tech Partnership News
CMC's Strategic Incubation of Galaxis Unveiled: A New Era for Blockchain-Powered Communities
PRESS RELEASE | 2 days ago
© 2024 Saint Bitts LLC
Bitcoin.com
All rights reserved.
support@bitcoin.com
Company
About
Advertise
Careers
Blog
Contact
Partners
Support
Legal
Sitemap
My Privacy Choices
Get Crypto
Buy Verse
Buy Bitcoin
Buy Ethereum
Buy Bitcoin Cash
Buy USDT
Buy USDC
Buy Avalanche
Buy Polygon
Bitcoin ATM
Crypto Faucets
Crypto Tax
Products & Services
Learning Center
Wallet
Verse DEX
List in Wallet & Markets
Bitcoin Cash Register
Spend Crypto
Sell Bitcoin
Crypto Merchants
Bitcoin Map
Bitcoin ATM
Bitcoin Teller Machine
Bitcoin ETF
Ethereum ETF
Donate
Games
Bitcoin Slots
Bitcoin Roulette
Bitcoin Blackjack
Bitcoin Dice
Bitcoin Gambling
Bitcoin Poker
Bitcoin Live Casino
Bitcoin Casino Bonus
Bitcoin Casino Free Spins
Bitcoin Casino
Bitcoin Data
Block Explorer
Markets
Tools
Educate
Bitcoin Whitepaper
Learning Center
Satoshi's Archive
Assorted list of Crypto Newsletters
Follow
News
Telegram
YouTube
Instagram
Twitter
Facebook
LinkedIn
Allow notifications to get the latest cryptocurrency news and updates.
AllowCancel