Cryptocurrency analysis firm Glassnode has released a new report on Bitcoin (BTC)'s recent price movements. The report suggests that Bitcoin is showing signs of fatigue following the rally seen following the Fed's FOMC meeting.
According to Glassnode data, long-term investors (LTH) have recently realized profits of 3.4 million BTC. Meanwhile, ETF inflows, one of the key factors supporting the rally, have slowed significantly.
According to the company's assessment, weakness in spot and futures trading is noteworthy, with the $111,000 short-term investor cost emerging as critical support. It warned that if this level cannot be maintained, Bitcoin could enter a deeper correction.
Glassnode summarized the current situation as follows:
- Following the post-FOMC rally, the market experienced a classic post-news selling pressure.
- While only an 8% pullback has occurred so far, the total realized asset inflow of $678 billion and the large-scale distribution of LTHs are showing signs of market maturation.
- Demand for ETFs, which had previously absorbed supply, slowed rapidly during the FOMC process, making the balance of flows fragile.
Spot volumes surged during the sell-off, while futures saw a sharp deleveraging. Furthermore, hedging increased in the options market, with strong demand for put options attracting attention.
In its conclusion, Glassnode stated that Bitcoin's post-FOMC decline was a typical post-news correction, but that the overall market structure increasingly resembled exhaustion. “The risk of a deeper cooling remains on the table if institutional demand and long-term investors fail to rebalance,” the company said.
*This is not investment advice.
