BTC in the Eye of the Storm, According to Glassnode Co-Founders – Here's why !

[tokyohd]

The co-founders of leading analytics firm Glassnode are warning Bitcoin traders that the current macroeconomic backdrop could ignite another sell-off event for BTC.

In Glassnode’s latest newsletter, Jan Happel and Yann Allemann say that Bitcoin’s correlation to risk-on assets remains high, suggesting that a correction in the US stock market will likely drag down BTC as well.

“Our analysis continues to suggest that this renewed sensitivity to market risks and a higher likelihood of stronger drawdowns has not been due to a lack of confidence in BTC but rather due to a charged macroeconomic environment.”

According to the Glassnode co-founders, the macroeconomic landscape looks shaky after the Federal Reserve announced the tapering of its balance sheet to the tune of $95 billion per month in an effort to combat persistent inflation. They also mention the looming risk that Russia’s military aggression could expand and target territories of the European Union.

In response to the risky environment, the Glassnode executives say that over $100 million have flowed out of the crypto markets last week with BTC receiving the brunt of the outflows.

“Zooming into the crypto space, last week saw $134 million in fund outflows, marking the second-highest weekly outflows in 2022. Solana received $3.7 million in inflows, and altcoins (multi-asset) recorded $5 million in inflows, while a massive $131 million flowed out of Bitcoin.”

Despite the bleak macroeconomic picture, Allemann says that BTC continues to show signs of on-chain strength. According to Allemann, BTC investors are withdrawing Bitcoin from crypto exchanges at a historic rate, indicating that a bottom could be in sight.

“Bitcoin exchange net position change shows potential bottoming and next leg up. Less supply on exchanges leads to subsiding selling pressure.”

Airticle Link: https://dailyhodl.com/2022/04/17/bitcoin-btc-in-the-eye-of-the-storm-according-to-glassnode-co-founders-heres-why/

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[pooya87]

The co-founders of leading analytics firm Glassnode are warning Bitcoin traders that the current macroeconomic backdrop could ignite another sell-off event for BTC.

- Bitcoin price drops
- Owner of a company sees opportunity to advertise his business
- Owner of the company makes a random statement according to the market direction
- Shitty news sites jump at the opportunity to get some traffic
- A shitty article is published

that Bitcoin’s correlation to risk-on assets remains high, suggesting that a correction in the US stock market

There has never been any correlation between bitcoin and any other "asset" in the past 13 years. However in the past couple of years some people have been ceaselessly trying to convince everyone there is such a correlation and have succeeded in their agenda as we can see people panic sell bitcoin each time some shitty asset drops.

[Poker Player]

Despite what all of these peddlers say, it is never a good idea to invest based on expectations about the economic situation. If you want to buy Bitcoin there are better reasons to do so than trying to guess whether the stock market will go up or down, and whether this in turn will affect Bitcoin, etc. Although most of the retailers who buy Bitcoin play this game, trying to guess by trading, and also the vast majority end up losing money.

As easy as it is:

1) Buy Bitcoin.
2) Don't do anything else at least until the next cycle.

For people with little capital it would be better:

1) Regularly buy as much Bitcoin as your budget allows (DCA).
2) Do nothing else until at least the next cycle.

[Doan9269]

The co-founders of leading analytics firm Glassnode are warning Bitcoin traders that the current macroeconomic backdrop could ignite another sell-off event for BTC.

Having such experience isn't something new, this is not the first time bitcoin price is dropping and not the first time it will be as well rising, so why creating FUD? i see that most people that got freaked about an event of price speculation on bitcoin either have zero or little knowledge about how the whole thing works, well this is social media and anyone can come out with a claim base on his myopic sight of approach when it comes to bitcoin.

In Glassnode’s latest newsletter, Jan Happel and Yann Allemann say that Bitcoin’s correlation to risk-on assets remains high, suggesting that a correction in the US stock market will likely drag down BTC as well.

How can someone comes out lacking knowledge about something and make a claim about that same thing and think we are believe his fictions and assumptions? assuming he's one of the bitcoin investors I would have respected his claim even though not believing such. this is nothing than creating muse to the atmosphere.

Less supply on exchanges leads to subsiding selling pressure.”

I hope people like this will regret later when they see bitcoin emerging a new ATH, what would they have claimed even if the price goes below $30k, all investors should withdraw? his economics study on the law of demand and supply need a second taught.

[Kakmakr]

So has anyone even thought that the reason for the out flow of coins on exchanges, has something to do with the possible increase in legislation on "centralized" Exchanges? Why should "Whales" keep their coins on Exchanges, if the governments of the world are closing "Russian" wallets in Banks and on Crypto Exchanges? (It just shows us.... why Exchanges are not a good place to deposit your coins)

I think a lot of people opened their eyes after the Russian sanctions exposed the weakness of centralized Exchanges and wallet providers. They now know that if you are not in control of your Private keys.... you do not own those coins. 
 

[aysg76]

Is there any financial asset that will always give you profit without even surpassing single loss term to your portfolio? The clear answer is NO so why are we always panicking whenever there is such FUD related to bitcoin in the market i didn't understand.

The inflation has its effect on every major markets and you can see S&P 500 index losing it's value over time and there are fluctuations but it's regulated and volatility is low so we are not afraid of it,gold despite being negative returns to the holders over years has been preferential choice of investment for many but when it comes to btc that is complete revolution to end up the central chain of burden we start fearing and sell off on exchange starts happening.

If you understand bitcoin and have an idea of how markets are reacting to its adoption then you will not fear of holding it long term so best is to keep calm and hold btc or if you can't handle the market is always open to place your sell orders.

[Flexystar]

I think 100 mln 200 mln USD moving here and there out of crypto is really really normal thing. I never got excited with such amounts because these are seriously just hundred to thousand in bitcoins which could be exchanger profiting for their business and taking it out? Or May be institutional share holders selling in bulk. It could be just many more things out of hundred so never judge that Crypto is going down because of a problem. Rather such investors will always take opportunities to rebuy once they get the chance.

[pooya87]

So has anyone even thought that the reason for the out flow of coins on exchanges, has something to do with the possible increase in legislation on "centralized" Exchanges?

Did any centralized exchange announce that their users are withdrawing their money from their platform?
Or did you just read a tweet/news coming from a scam organization called "Whale Alert" telling you whales are doing it?
LOL

Why should "Whales" keep their coins on Exchanges, if the governments of the world are closing "Russian" wallets in Banks and on Crypto Exchanges?

Do you honestly think after dozens of major centralized exchange hacks where the total is in trillions ($14 billion in 2021 alone was stolen according to Chainalysis) people suddenly woke up and realized it is a bad idea to store coins on CEX because some governments threatened to close down Russian accounts while not even a single bitcoin exchange has ever done anything like that

[RealMalatesta]

The co-founders of leading analytics firm Glassnode are warning Bitcoin traders that the current macroeconomic backdrop could ignite another sell-off event for BTC.

Having such experience isn't something new, this is not the first time bitcoin price is dropping and not the first time it will be as well rising, so why creating FUD? i see that most people that got freaked about an event of price speculation on bitcoin either have zero or little knowledge about how the whole thing works, well this is social media and anyone can come out with a claim base on his myopic sight of approach when it comes to bitcoin.

I believe I have been here long enough to know that every single time bitcoin goes down there will be some FUD and every time it goes up there will be some FOMO, I can't really know for sure why but it has always happened that way. I understand that it is not going to be simple for most people to accept this fact but it is just the truth.

For some reason, people just look at the current situation and see that there could be a chance that bitcoin could crash even more, and the other people think that we are on the verge of a new breakout as well. Nobody says "maybe it will just stay here for a while", no idea why they do that at all.