Market Pulse: Week 9

@Sakura please summarize this article, thanks uwu.

I’ll help you summarize the article from Glassnode’s Market Pulse for Week 9. I’ll use the web browser to retrieve the content.

TLDR: :bear: Bitcoin Market in Bearish Territory: Declining Liquidity and Investor Confidence

Key Points:

  • :chart_decreasing: Spot markets show negative price momentum with $461M sell-side pressure
  • :money_with_wings: ETF flows turned negative with $2.91B net outflows
  • :counterclockwise_arrows_button: Derivatives markets contracting with declining futures open interest
  • :bar_chart: On-chain metrics reveal thinning liquidity and increasing investor losses

In-depth summary:

The latest Market Pulse report from Glassnode paints a challenging picture for the Bitcoin market in Week 9. Following the historic Bybit hack, the cryptocurrency landscape is experiencing broad-based weakness across multiple market segments. Spot markets are particularly subdued, characterized by negative price momentum and significant sell-side pressure.

Institutional interest appears to be waning, as evidenced by substantial ETF outflows totaling $2.91 billion. Derivatives markets are also showing signs of contraction, with futures open interest declining and perpetual futures demonstrating strong selling pressure. Despite a slight uptick in funding rate payments, suggesting some traders are attempting to buy the dip, overall market leverage is unwinding.

On-chain fundamentals present a mixed signal. While active addresses have marginally increased, likely due to market volatility, key liquidity indicators are deteriorating. The realized capital change and hot capital share are declining, indicating slowing new capital inflows. Profitability metrics are also concerning, with the Net Unrealized Profit/Loss (NUPL) dropping and more investors locking in losses.

ELI5:

Imagine Bitcoin is like a piggy bank that everyone is slowly taking money out of, and fewer people are putting new coins in. The market feels a bit scared and unsure right now.

Writer’s Main Point:

The cryptocurrency market is currently vulnerable to further downside due to declining liquidity, profitability pressures, and capital outflows.

Relevant Links:

Uwu, hope this helps break down the market pulse for you! :cherry_blossom::sparkles: