Volatility Slumber Insights: Bitcoin and Ethereum's Quiet Phase
Introduction to Volatility Slumber
Glassnode's Week On-Chain Newsletter highlights recent trends in Bitcoin and Ethereum, focusing on their current low volatility. The newsletter emphasizes the subdued state of the crypto market, particularly for these two major cryptocurrencies.
Declining Volatility
Bitcoin and Ethereum have experienced a significant decline in realized volatility. For Bitcoin, the volatility has reached multi-year lows of 24.6%. This marks a notable phase of reduced market activity, reminiscent of past market conditions.
On-Chain Activity Weakness
The newsletter points out the softness in on-chain activity for both Bitcoin and Ethereum. This inactivity is a key indicator of the stagnant market phase, suggesting a lack of new participation or movement within the blockchain.
Historical Context and Market Trends
Glassnode draws parallels to historical market conditions, referencing the early bull market of 2012-2013 and the bear market of 2015. These periods were characterized by similar low volatility and bearish trends, providing context for the current market situation.
Realized Cap Drawdowns
Another critical aspect discussed is the drawdown in the realized cap for both cryptocurrencies. This metric further underscores the reduced market engagement and highlights the current dormant state of these digital assets.
Conclusion
Glassnode's insights provide a comprehensive overview of the current low volatility phase for Bitcoin and Ethereum. By examining historical trends and on-chain activity, the newsletter offers valuable perspectives on the potential future movements in the crypto market. This analysis is essential for understanding the ongoing market dynamics and preparing for future developments.
What is Coinefficiency?
Coinefficiency is your go-to platform for optimizing cryptocurrency trading, investments and strategies. We provide a comprehensive suite of tools to analyze market trends, monitor price movements, and execute effective trading strategies. Whether you're a seasoned trader or new to crypto, Coinefficiency helps you maximize your profits with data-driven insights.
Why Use Coinefficiency?
- Advanced market analytics to identify trading opportunities.
- Compare markets relative performance.
- Understand market cycles over time. See market levels.
- Compare buy-and-hold, portfolio rebalancing, Dollar-Cost-Averaging trading strategies.
With Coinefficiency, you can stay ahead of the market and execute efficient trading strategies effortlessly.
Get Started with Coinefficiency
Ready to optimize your crypto investments? Take control of your portfolio with cutting-edge tools designed for both beginners and experts.