Bitcoin continues to operate within a market environment that is described as “subdued and low-conviction” with weak spot activity, according to on-chain analytics provider Glassnode. The report highlighted that spot trading volume remains soft, with Binance’s relative volume below the baseline, indicating a lack of strong organic demand despite the recent price stabilization.
Although Bitcoin reached a three-week high of $72,700 following news of a two-week ceasefire between the United States and Iran, it quickly retreated during the Asian trading session, dropping below $71,000. Glassnode noted that Bitcoin is still within the bear market value zone.
Glassnode also mentioned that despite the bounce in Bitcoin’s price from $67k to $72k, weak spot demand and softer futures activity suggest that the recovery lacks strong conviction, especially as ETF flows turn modestly positive.
Expectations of major volatility arise as Iran limits ship traffic in the Strait of Hormuz, leading to a rise in crude oil prices. Santiment noted a “buy the news” response to the ceasefire announcement but cautioned that mixed reports indicate more volatility ahead.
Analyzing exchange activity, CryptoQuant analyst ‘Darkfost’ observed a significant decline in the number of addresses depositing Bitcoin on exchanges, signaling slowing market activity. Exchange depositing addresses have dropped to a ten-year low, reminiscent of 2017 levels.
Total cryptocurrency market capitalization declined by 1.3% to $2.49 trillion, with Ethereum prices slightly dipping. Altcoins experienced losses, with XRP, Solana, Dogecoin, Cardano, Chainlink, and Monero seeing heavier declines.
RealVision CEO Raoul Pal expressed optimism, citing rising global liquidity and bullish indicators for high-risk assets. Despite market fluctuations, Bitcoin remains in a subdued and low-conviction market environment.
The article was originally published on CryptoPotato and can be found in its entirety on their website.
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