Bitcoin (BTC) continued its recovery on September 10, reaching $58,000, up 8% from its four-week low of $53,955. Despite the recovery, Bitcoin investors “remain unconvinced” in the short term, according to analysis by Glassnode.
According to a report released by Glassnode on September 10, investors are interacting less with centralized exchanges (CEXs) that “generally have larger contract volumes.”
The report noted that CEX remains a central indicator of investor speculative activity and price discovery in the ever-evolving cryptocurrency market. They assessed aggregated on-chain volumes on CEX to gauge investor activity and speculative appetite.
The market intelligence firm ran a similar 30-day/365-day momentum crossover on exchange-related inflows and outflows and found that the monthly average volume was significantly lower than the year-ago average.
“This highlights the decline in investor demand and the decline in speculators trading within the current price range.” Bitcoin Exchange Volume Momentum. Source: Glassnode
Glassnode believes that the recent market decline has slowed market activity. Applying the 90d MinMax scalar metric to evaluate spot volume on exchanges, the analysts concluded that the momentum of spot volume across CEXs continues to decline.
“This adds further weight to the idea that trade activity has declined markedly over the past quarter.”
Furthermore, Glassnode used the CVD indicator, which estimates the net balance between buying and selling pressure in the spot market, and found that investor selling pressure has increased over the past three months, “contributing to the downward trend in price action.”
Bitcoin CEX Spot CVD. Source: Glassnode
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The report also notes that institutional investor appetite is waning, with spot Bitcoin exchange-traded funds (ETFs) “showing net outflows.”
“Net inflows into spot Bitcoin ETFs in USD have weakened since August 2024, currently reporting outflows of $107 million per week.” US Spot Bitcoin ETF Net Inflows. Source: Glassnode
This is also supported by data from Farside Investors, which shows that US-based spot Bitcoin ETFs saw a total net outflow of $1.186 billion between August 27 and September 6, with a small inflow of $28 million on September 9.
Additional data from CoinShares shows that a total of $643 million was lost from Bitcoin investment products during the week ending September 6.
CoinShares attributed this to negative sentiment following stronger-than-expected macroeconomic data last week, which increased the likelihood of the U.S. Federal Reserve cutting interest rates by 0.25%.
According to trading firm QCP Capital, Bitcoin volatility could return following the expected US Consumer Price Index data on September 11 and the first presidential debate between Kamala Harris and Donald Trump.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.