Bitcoin's recent price rebound to $58,000, an 8% increase from its monthly low, has failed to reignite investor confidence, according to Glassnode.
Bitcoin's recent price rebound to $58,000, an 8% increase from its monthly low, has failed to reignite investor confidence, according to Glassnode.
The cryptocurrency market intelligence firm reports that despite the uptick, investors remain cautious, with trading activity across centralized exchanges (CEXs) showing a notable decline.
Glassnode highlighted a contraction in trading volumes across CEXs, which are considered key indicators of speculative activity in the crypto market. Furthermore, the monthly average on-chain volumes has dipped significantly below the yearly average, signaling a decrease in demand within the current price range.
The report also pointed to a diminishing momentum in spot trading volumes on exchanges, as evidenced by the 90-day MinMax scalar metric. Additionally, the Cumulative Volume Delta (CVD) metric suggests an increase in selling pressure from investors over the last three months, contributing to the downward price movement.
The institutional landscape mirrors this waning appetite. According to Farside Investors, US-based spot Bitcoin ETFs had a combined net outflow of $1.186 billion from between August 27 and September 6, with only minor inflows of $28 million on September 9.
Looking ahead, trading firm QCP Capital suggests that the upcoming US Consumer Price Index report on September 11, coupled with the first Presidential debate between Kamala Harris and Donald Trump, could potentially reignite Bitcoin volatility.
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