Bitcoin Maturing on the Back of Institutions, Trading Desks, and High-Net-Worth Individuals: Glassnode

Crypto insights firm Glassnode says Bitcoin (BTC) is evolving into a macro asset class thanks to big players in the financial markets.

In their new weekly report, Glassnode points out how Bitcoin’s blockchain has steadily become dominated by very large transaction sizes, or transactions over $10,000,000 with the exception of those made by crypto exchanges.

“Breaking down the on-chain volume by transaction size, we can also see that very large transaction sizes ($10M+) continue to dominate. Overall entity-adjusted transaction volumes have largely returned to the peak of between $13.6B and $16.8B per day.

The rising dominance of large transaction sizes hints to the increased maturation of Bitcoin as a macro-scale asset with increasing interest from high-net-worth individuals, trading desks, and institutions.”

Glassnode also takes a look at Bitcoin’s NUPL (net unrealized profit and losses), which compares the amount of unrealized profits to unrealized losses in all open positions. According to the blockchain analytics firm, Bitcoin’s NUPL just bounced off a level that acted as support during both the 2013 and 2017 bull runs.

“If the market were to continue to trend higher and into a bullish continuation, this fractal would be similar to both the 2013 and 2017 market. In both prior cycles, a NUPL value of 0.5 acted as a ‘support’ level during major corrections as the market’s profitability and conviction to hold was tested, bounced and subsequently rallied higher.

Conversely, falling below 0.5 again could potentially trigger more coin holders to spend coins in fear of seeing their unrealised profits diminish further.”

The firm says another indicator called SOPR (spent output profit ratio) for long-term holders, which reflects the degree of realized profit for all coins moved on-chain, is flashing signals which indicate either the end of a bear market or the beginning of a bull market.

“As a longer term cyclical metric, the LTH-SOPR usually trades in this range during late stage bear markets, and early stage bull markets. This is a result of lengthy sideways price action which compresses profit multiples, even for longer-term investors.”

You can read the full Glassnode report here.

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