The Bitcoin market is currently experiencing a period of stagnation, characterized by low trading activity and a tightening supply, according to a new report by Glassnode.
The research firm noted that the actual market value of Bitcoin has plateaued at $622 billion over the past two months, suggesting that most tokens are being traded near their original purchase prices. Additionally, absolute realized gains and losses have declined significantly since the March peak, indicating a decrease in overall buying pressure.
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Glassnode also highlighted the increasing prevalence of HODLing behavior among market participants. The percentage of Bitcoin wealth held by addresses with coins for less than a week has dropped to a low liquidity territory, now accounting for only 4.7% of the total network wealth. This trend suggests a tightening of the supply side as more tokens are held for extended periods.
The report concludes that the Bitcoin market is currently in a state of relative inactivity, with both supply and demand showing signs of stagnation. While this may indicate a potential for future price movements, the current trend suggests a market that is consolidating and preparing for a potential breakout.
