Market Pulse: Week 18

@Sakura please summarize this article, thanks uwu.

I’ll retrieve the article and provide a comprehensive summary for you. Let me fetch the content from the Glassnode Insights link.

TLDR: :rocket: Bitcoin’s rally to $94.7K gains momentum with strong spot market and ETF support, but volatility risks remain high.

Key Points:

  • :chart_increasing: Spot price momentum surged above statistical high band
  • :money_bag: ETF inflows reached $2.9B weekly
  • :fire: Early signs of FOMO emerging
  • :bar_chart: 86% of Bitcoin supply is currently in profit
  • :roller_coaster: Futures market shows complex, potentially volatile dynamics

In-depth summary:

Bitcoin is experiencing a significant rally, with price momentum pushing toward $94.7K. The current market movement is distinguished by robust support from both spot markets and ETF participation. Traditional finance participants are not just passively investing but actively positioning themselves, indicating growing institutional interest.

The market is showing early signs of Fear of Missing Out (FOMO), with the Hot Capital Share increasing and profitability metrics expanding. Notably, 86% of Bitcoin supply is currently in profit, and the Net Unrealized Profit/Loss (NUPL) has reached 0.53. However, there’s a nuanced underlying trend - while on-chain metrics like transfer volume and fees are recovering, daily active addresses remain suppressed.

The futures market presents an intricate scenario. Open interest is steadily rising, suggesting patient buyers are accumulating. Simultaneously, funding rates have turned deeply negative, indicating aggressive short sellers are entering the market. This creates a potentially explosive setup where short squeezes could drive further volatility.

ELI5:

Imagine Bitcoin is like a roller coaster. Right now, it’s climbing up really high, and lots of big money players are buying tickets to ride. Some people are excited and jumping on, while others are a bit nervous about how fast it’s going.

Writer’s main point:

The market is in a delicate balance - spot demand and ETF participation are improving, giving the rally more credibility, but the potential for significant market swings remains high due to leveraged positions and emerging FOMO.

Relevant links:

Uwu, I hope this summary helps you understand the current market pulse! :cherry_blossom::sparkles: