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FTX and Alameda Research cash out $10.8M to Binance, Coinbase, Wintermute

The latest transfer of $10.8 million was spread across 8 tokens, including Stepn (GMT), Uniswap (UNI), Synapse (SYN), Klaytn (KLAY), Fantom (FTM), Shiba Inu (SHIB), Arbitrum (ARB) and Optimism (OP).

Wallets linked to defunct crypto trading firms FTX and Alameda Research moved $10.8 million to accounts in Binance, Coinbase and Wintermute using eight cryptocurrencies.

Blockchain analysis firm Spot On Chain found $10.8 million worth of cryptocurrencies being moved from FTX and Alameda Research accounts to various crypto exchanges.

The latest transfer of $10.8 million was spread across eight tokens — $2.58 million in StepN (GMT), $2.41 million in Uniswap (UNI), $2.25 million in Synapse (SYN), $1.64 million in Klaytn (KLAY), $1.18 million in Fantom (FTM), $644,000 in Shiba Inu (SHIB) and small amounts of Arbitrum (ARB) and Optimism (OP).

On Oct. 24, the FTX and Alameda wallets transferred $10 million to a single wallet address, which was later redistributed to Binance and Coinbase accounts. 1, a similar transaction occurred between the parties involving $13.1 million being moved to Binance and Coinbase accounts.

Related: Ex-FTX execs team up to build new crypto exchange 12 months after FTX collapse: Report

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Bitcoin Cash Rallies Ahead of Upcoming Halving and Upgrade

Crypto ETP volumes surge 91%, outpacing underlying assets: Report

Bitcoin accounted for 75% of the total crypto ETP AUM between January and October 2023, according to the publicly-listed crypto firm Fineqia.

Global cryptocurrency exchange-traded products (ETP) have seen a significant uptick in 2023, reportedly outpacing the growth of underlying assets, according to a report by digital asset platform Fineqia.

Crypto-based ETPs issued by companies like 21Shares, Grayscale and CoinShares recorded a 91% increase in total assets under management (AUM) from Jan. 1 to Oct. 31, 2023, Fineqia reported.

The surge of crypto ETPs has outperformed the growth of underlying digital assets by 30%, as cryptocurrencies had comparatively slower growth of around 70% over the same period.

Fineqia’s study included all currently issued a total of 168 crypto ETPs, based on the ETP AUM data from sources like 21Shares, Grayscale Investment, VanEck Associates and others.

“The research includes all the products issued by 21Shares, Grayscale, CoinShares, ETC Group, VanEck, WisdomTree, and other issuers,” a spokesperson for Fineqia told Cointelegraph.

“The data is updated every first business day of the month, hence they express the data at the end of the previous month,” Fineqia’s research analyst Matteo Greco stated. He added that the data is collected from official sources and when not available on the issuers’ websites from data aggregators. “All the data is stored into a spreadsheet and stacked every month starting from August 2022,” the analyst noted.

Fineqia has attributed the difference between the crypto ETP AUM surge and the surge of the crypto market to Bitcoin’s (BTC) larger proportion within digital asset ETPs compared with its share in the overall market. According to the study, Bitcoin accounts for 75% of the total crypto ETP AUM. On the other hand, Bitcoin’s share of the crypto market has been around 50% over the past year, according to data from CoinGecko.

At the same time, Bitcoin has been one of the biggest gainers on the crypto market, surging 104% during a period from Jan. 1 to Oct. 31, 2023. Ether (ETH), the second-largest cryptocurrency by market cap, surged 50% over the same period, according to data from CoinGecko.

Bitcoin price chart from Jan. 1 to Oct. 31, 2023. Source: CoinGecko

According to Fineqia, the crypto ETP AUM hit $38 billion in October, surging 25% month-over-month and hitting its highest figure since May 2022. The total cryptocurrency market capitalization also rose 17% in October, surging from $1.15 trillion to $1.35 trillion.

Related: CoinShares gets buying rights to Valkyrie’s crypto ETF unit

According to Fineqia CEO Bundeep Singh Rangar, the dynamics in the crypto ETP market and overall crypto markets are a signal of the excitement around a potentially coming spot Bitcoin exchange-traded fund in the United States. He said:

“The smoke signals are out for the very likely and near imminent approval of Bitcoin Spot ETFs. The market’s simply responding to this positive signaling.”

The news comes as 12 spot Bitcoin ETF applications from firms like 21Shares and WisdomTree await a decision by the U.S. Securities and Exchange Commission (SEC). In mid-November, the SEC delayed decisions on approvals for another three spot Bitcoin ETF applications by companies like Franklin Templeton, Hashdex and Global X.

On Nov. 15, Franklin Templeton and Hashdex — whose deadline was previously set for Nov. 17 — saw their deadlines delayed by the SEC to Jan. 1, 2024. Global X, whose deadline was scheduled for Nov. 21, also faced a delay as expected, with the SEC asking the firm to submit a rebuttal in the next 35 days or by Dec. 22.

Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in

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Crypto data platform Glassnode sells Bitcoin tax software to Blockpit

After acquiring the crypto tax platform Accointing in October 2022, Glassnode is selling the business to focus on DeFi and institutional offerings.

Cryptocurrency intelligence firm Glassnode has said it’s dropping crypto tax-related projects to focus on new solutions targeting institutional investors and decentralized finance (DeFi).

Glassnode, on Nov. 6 announced the sale of its crypto-focused tax platform known as Accointing to the European crypto compliance provider Blockpit. The firms declined to disclose the size of the deal to Cointelegraph, only revealing that the transaction was a “multimillion-dollar deal.”

“Glassnode will exit the crypto tax space with the sale of Accointing to Blockpit,” a spokesperson said, adding that the deal enables the firm to deepen its focus on delivering new Digital Asset Intelligence Solutions to its institutional clients.

“We have used the last months to reshape our infrastructure, enabling our move into DeFi data solutions and expansions into other digital asset ecosystem areas in the future,” Glassnode representative noted, adding:

“After having built the leading on-chain data platform for Bitcoin and Ethereum, we are currently expanding our product offering into DeFi. Our aim is to equip Institutions with DeFi data and tools that help them to trade in and navigate the DeFi space.”

The transaction came just a year after Glassnode acquired Accointing to introduce tax-reporting compliance tools into its platform in October 2022.

The acquisition of Accointing marks another foray by Blockpit into merging with competitors, as the platform previously merged with the German rival platform Cryptotax in 2020. With the latest acquisition, Blockpit reiterated its ambition and vision for a consolidated and unified crypto tax platform for Europe.

“Due to the very similar nature of the Blockpit and Accointing platform, the acquisition really is a perfect opportunity,” Blockpit co-founder and CEO Florian Wimmer told Cointelegraph.

Related: 5 nations challenge crypto experts and investigators to target tax crimes

Wimmer said that Accointing users could “easily migrate their profiles and data” to a new Blockpit account, which he promised would take just a few minutes. The account migration will allow Blockpit to focus all their joint resources on developing a unified platform, deliver more features and offer a better customer experience, the CEO said, adding:

“At the same time, Blockpit is doubling its revenue without increasing the cost — as we will shut down the Accointing infrastructure in the short term — massively increasing our cash flow.”

The deal’s timing is also perfect, Wimmer said, referring to the upcoming regulations like the Crypto-Asset Reporting Framework, or CARF, and the crypto tax reporting rule known as the Directive on Administrative Cooperation, or DAC8.

“Starting 2026, all crypto asset service providers, including custodians, exchanges, brokerages and others, will be forced to report user Know Your Customer data alongside transaction data to tax authorities,” Wimmer noted. According to the exec, the upcoming regulations will “massively increase the enforcement and prosecution of tax fraudsters.”

Formally adopted in October 2023, DAC8 aims to grant tax collectors the jurisdiction to monitor and evaluate every cryptocurrency transaction carried out by individuals or entities within any other member state of the EU.

Magazine: Best and worst countries for crypto taxes — Plus crypto tax tips

Bitcoin Cash Rallies Ahead of Upcoming Halving and Upgrade

Moody’s unveils service that uses AI to predict stablecoin depeggings

Moody’s Analytics will use machine learning and a host of indicators to compile and analyze large-cap stablecoins and identify probable depeggings.

Moody’s Analytics is launching a new stablecoin service that will use AI to predict probable depeggings “in a 24-hour time horizon” while providing real-time insights about stablecoin issuers’ liquidity and stability.

The stablecoin market is getting stabler, Moody’s observed in its Nov. 6 announcement for the launch of Digital Asset Monitor. 

So far in 2023, there have been 1,914 depeggings, of which 609 were of fiat-backed large-cap stablecoins. This compares with 2,847 in all of 2022, of which 707 were large-cap. While some correlation to rising interest rates can be observed, a number of coin-specific causes can also be detected, Moody’s said.

Schematic of Moody's Digital Assets Monitor. Source: Moody's

Moody’s DAM will track 25 fiat-backed stablecoins that represent over 92% of total stablecoin market capitalization. They include Tether (USDT), USD Coin (USDC), and PayPal Coin (PYUSD). More stablecoins will be incorporated into the service in time, according to its website:

“Digital Asset Monitor (DAM) is a machine learning model that combines on and off chain data, financial statements and economic indicators.”

Besides identifying depegging risks, the service will indicate “the stablecoin’s market and liquidity dynamics, the stability of the stablecoin issuer, the custodians that hold the stablecoin’s assets, and the quality of these reserves.” In addition, it will provide “a transparency index that will highlight the quality of disclosures made by the entities behind these fiat-backed stablecoins.”

Related: AI and blockchain will ‘reshape sectors’ and create new markets from scratch — Moody’s

“The tool was built in a year using agile-development frameworks to address customer needs,” Moody’s Analytics’ product innovation senior director, Yiannis Giokas, said in the announcement.

Reports that the company was developing the new service emerged at the beginning of the year. Moody’s Analytics is a separate company from Moody’s Ratings. It provides commentary on aspects of the crypto assets market on a regular basis.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Bitcoin Cash Rallies Ahead of Upcoming Halving and Upgrade

UK tops crypto activity in Central, Northern and Western Europe: Chainalysis

Crypto adoption in the United Kingdom has been growing as the country adopts more regulations targeting crypto and stablecoins, the study shows.

The United Kingdom has emerged as a major cryptocurrency economy worldwide and the biggest crypto country in terms of raw transaction volume in Central, Northern and Western Europe (CNWE), according to a new study.

The blockchain analytics firm Chainalysis released two new chapters of its 2023 Geography of Cryptocurrency report on Oct. 18, including its brand new CNWE study and the second edition on Eastern Europe.

According to the CNWE-focused report, the region was the second-largest crypto economy in the world over the past year, behind only North America. The region accounted for 17.6% of global transaction volume between July 2022 and June 2023, receiving an estimated $1 trillion in on-chain value during the time period.

The U.K. has topped CNWE’s biggest crypto economies list and ranked third in the world in terms of transaction volumes after the United States and India. According to Chainalysis, the U.K. received an estimated $252.1 billion in cryptocurrency transactions in the past year.

Other big crypto economies in the CNWE included Germany and Spain, which received around $120 billion and $110 billion in crypto transactions over the past year, respectively. These countries are followed by major crypto economies like France, Netherlands, Italy, Switzerland, Sweden and others.

Top countries by cryptocurrency value received between July 2022 and June 2023. Source: Chainalysis

Some crypto analysts have previously hinted at growing crypto adoption in the United Kingdom. In February, the crypto tax platform Recap reported that London was the world’s most crypto-ready city for business, beating Dubai and New York.

The significant level of crypto adoption in the U.K. comes amid the country adopting several cryptocurrency regulations. The U.K. government has been steadily progressing toward adopting the Financial Services and Markets Bill, which adds a definition of crypto assets to the existing financial services legislation and provides a regulatory framework for stablecoins like Tether (USDT).

Related: Chainalysis axes another 15% of staff, citing difficult market conditions

In October 2023, the U.K. Financial Conduct Authority enforced the Financial Promotions Regime, establishing a regulated standard for crypto firms to promote their business without hurting investors. Previously, the U.K. also adopted the U.K. crypto “Travel Rule” in September 2023, requiring crypto asset businesses in the U.K. to collect, verify and share certain information about certain crypto asset transfers.

In addition to the CNWE report, Chainalysis also released a detailed report on Eastern Europe, which is the fourth-largest crypto market, according to the firm. The region received $445 billion in crypto between July 2022 and June 2023, representing 8.9% of global transaction activity during the analyzed period.

Chainalysis did not immediately respond to Cointelegraph’s request for information about the methodology of its study and what types of crypto transactions were included in the analysis. This article will be updated pending new information.

Magazine: The Truth Behind Cuba’s Bitcoin Revolution: An on-the-ground report

Bitcoin Cash Rallies Ahead of Upcoming Halving and Upgrade

Alameda sent $4.1B of FTT tokens to FTX before crash: Nansen report

Nansen analysts observed “unusual transactions between FTX and Alameda” in the days leading up to FTX’s bankruptcy.

Blockchain data analysts from Nansen have revisited the days leading up to the collapse of FTX, including the transfer of $4.1 billion worth of FTT tokens between the exchange and Alameda Research.

A Nansen report shared with Cointelegraph reveals unique observations from the blockchain analytics firm, highlighting the close relationship between the two companies founded by Sam Bankman-Fried as the former FTX CEO appears in court to face a litany of charges relating to the collapse of the exchange.

The collapse of FTX is widely reported to have been sparked by initial reports that flagged the significant 40% share of Alameda’s $14.6 billion in assets held in FTT tokens in September 2022.

Nansen analysts revealed that they had observed dubious on-chain interactions between FTX and Alameda before these reports came to light. Between Sept. 28 and Nov. 1, Alameda sent $4.1 billion FTT tokens to FTX and several continuous transfers of United States dollar-pegged stablecoins amounting to $388 million.

Net FTT flow from Alameda to FTX. Source: Nansen

On-chain data also indicated that FTX held around 280 million FTT tokens (80%) of the total 350 million FTT supply. Blockchain data reflects “considerable” proportions of FTT trading volume amounting to billions of dollars flowing between various FTX and Alameda wallets.

Nansen also highlights that most of the FTT token supply, consisting of company tokens and unsold non-company tokens, was locked in a three-year vesting contract. The lone beneficiary of the contract is an Alameda-controlled wallet, according to the analysts.

Given that the two companies controlled around 90% of the FTT token supply, Nansen suggests that the entities were able to prop up each other’s balance sheets.

The report also suggests that Alameda most likely sold FTT tokens over-the-counter, as well as for collateral for loans from cryptocurrency lending firms.

“This theory is backed by historical on-chain data where we observed regular large inflows and outflows between FTX, Alameda and Genesis Trading wallets with transfer volumes up to $1.7 billion as seen in Dec 2021.”

The collapse of the Terra ecosystem and subsequent bankruptcy of Three Arrows Capital (3AC) likely led to liquidity issues for Alameda due to the drop in value of FTT, which led to a covert, $4 billion FTT-backed loan from FTX.

“Our on-chain data indicates that this may have happened. Amidst the collapse of 3AC in mid-June 2022, Alameda sent ~163m of FTT to FTX wallets, worth ~$4b at that time.”

The researchers claim that the $4 billion transaction volume coincided with a $4 billion loan figure that close associates of Bankman-Fried had divulged in an interview with Reuters.

Alameda wallet balances. Source: Nansen

Blockchain data also reflects how Alameda would not have been able to make good on an offer to buy FTT tokens from Binance at $22 on Nov. 6. This was after Binance CEO Changpeng Zhao announced that the exchange would offload its tokens following disparaging reports about Alameda’s balance sheet.

Magazine: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis

Bitcoin Cash Rallies Ahead of Upcoming Halving and Upgrade

How AI is changing crypto: Hype vs. reality

In the latest Cointelegraph Report, we assessed the value AI is bringing to the crypto industry, by separating the hype from real use cases.

In the latest Cointelegraph Report, we sought to find out the real value AI brings to the crypto industry beyond the hype surrounding the technology. To do so, we looked into three main areas where AI is impacting crypto: trading, data analytics, and user experience. 

For many years, trading bots have allowed users to execute trades in an automated way based on certain pre-set parameters. 

With the recent development of Large Language Models such as ChatGPT, AI-powered bots are capable of processing large amounts of historical data, which can be helpful in predicting future price movements. 

However, despite the latest advancements, AI-powered bots are still not sophisticated enough to elaborate complex trading strategies.

“It's basically like having a bunch of dumb partners who can, who can adhere to very basic commands, but they can't do any like very complicated thinking themselves,” said Eric Crown, a professional crypto trader and YouTuber, sharing his personal experience with AI-powered bots. 

Regarding data analytics, AI tools can process large amounts of public data scattered on the blockchain, providing valuable insights into the dynamics of the crypto ecosystem and assessing potential market risks. 

However, a large amount of market data is kept off-chain by centralized exchanges and therefore is not publicly available. That limits the capability of AI to make accurate assessments. 

To find out more about the real value at the intersection of AI in crypto beyond the hype, watch out full Cointelegraph Report on our YouTube channel and make sure to subscribe!

Bitcoin Cash Rallies Ahead of Upcoming Halving and Upgrade

Real estate or Bitcoin: Which is more reliable?

Marcel Pechman explains whether real estate or Bitcoin is a better store of value and breaks down Instacart’s current valuation and why investors may want an alternate investment.

On this week’s episode of Macro Markets, Cointelegraph analyst Marcel Pechman discusses the real estate markets, highlighting stagnant mortgage demand, attributed to rising rates. With an average 30-year fixed-rate mortgage interest rate of 7.27%, refinancing and home purchase applications have dropped significantly.

Still, Pechman speculates that house prices might rise if inflation continues to grow. While some sellers may be distressed, real estate, especially urban residential, has historically been a reliable store of value. He concludes by highlighting that other investment options may not provide a safer haven in the current economic climate.

In the second segment, Pechman discusses Instacart’s initial public offering, which established its valuation at roughly $10 billion, significantly lower than its $39 billion peak valuation. This reflects the challenges faced by venture capitalists in the current economic climate. Pechman suggests a shift in investor metrics, emphasizing the need for a reliable store of value, where cryptocurrencies like Bitcoin (BTC) could play a role.

Pechman notes that not all cryptocurrencies seek growth through user bases and fees. Bitcoin can operate as a transparent reserve system for banks and nations, issuing Bitcoin-backed digital assets without requiring a billion users. This shift in perspective highlights the need for a reliable store of value. Unlike precious metals with auditing challenges, Bitcoin and cryptocurrencies can fill this role regardless of everyday user adoption.

For additional details and the complete analysis, check out the Cointelegraph YouTube channel.

Bitcoin Cash Rallies Ahead of Upcoming Halving and Upgrade

Ethereum price sees new low versus Bitcoin since switching to Proof-of-Stake

Ethereum spot ETF request, Ripple’s potential win against the SEC, and growing decentralized app dominance retain hope for ETH investors.

Ether (ETH) has seen a 36% year-to-date increase in its price in 2023 in U.S. dollar terms. This recovery, however, is modest given that ETH is currently trading 66% below its November 2021 peak of $4,870.

Ethereum vs. Bitcoin: 14-month downtrend and counting 

Moreover, on Sept. 20, Ether reached its lowest levels against Bitcoin (BTC) in 14 months, breaching the critical 0.06 BTC support. This has raised questions among Ether investors about the factors behind this price decline and what it will take to reverse the trend.

Ether price / BTC at Coinbase. Source: TradingView

ETH buyers placed their biggest hopes on protocol upgrades that significantly reduced the need for new coin issuance when the network transitioned to a Proof-of-Stake consensus mechanism.

These hopes were realized in mid-September 2022, resulting in an annualized issuance rate of just 0.25% of the supply. This transformation aligned with the Ethereum community's vision of "ultrasound money."

Furthermore, the subsequent Shapella upgrade on April 12 allowed for withdrawals from the native staking protocol, addressing a major concern for investors. Previously, both the 32 ETH deposits and the yield from participating in the network consensus were locked up indefinitely.

Confidence among Ethereum enthusiasts grew as these significant hurdles were crossed with minimal issues. They anticipated that the price of Ether would surpass $2,000, a prediction that came true on April 14.

However, this optimism was short-lived, as ETH's price promptly fell back to the same $1,850 level just a week later.

Notably, instead of witnessing a net withdrawal, Ethereum staking experienced a net inflow of 3.1 million ETH in the 30 days following the Shappela upgrade, surpassing even the most optimistic expectations.

Given that the Ethereum network's planned developments have generally been on track, albeit with the customary delays, investors now need to explore other potential catalysts for reversing the current downtrend in Ether's price relative to BTC.

External factors present important triggers for ETH price

One of these potential catalysts lies in the ongoing legal battle between Ripple (formerly Ripple Labs) and the U.S. Securities and Exchange Commission (SEC), which could significantly impact Ether's price momentum.

The SEC contends that XRP sales to retail investors constitute a security offering. However, in July, Judge Analisa Torres ruled that XRP generally does not qualify as a security under SEC guidelines, especially when distributed through exchanges.

As noted by the "American Lawyer and Bitcoiner" Bryan Jacoutot on a social network, the Ethereum Foundation remains exposed due to the pre-sale of ETH directed toward institutional investors and subject to a lock-up period.

According to Jacoutot, even if Ripple were to secure a favorable outcome, it wouldn't immediately mitigate the risks for Ethereum. Nevertheless, it's undeniable that the regulatory uncertainty surrounding the Ether ICO remains a source of concern for investors.

On Sep. 20, an Ethereum address associated with the ICO era showed its first activity, transferring 32.1 ETH (valued at $52,000 at the time) directly to Coinbase. This additional movement only amplified regulatory concerns since there are no apparent incentives for addresses that have remained dormant for four to eight years to divest at this particular point in the market cycle.

A similar occurrence unfolded with an address linked to Vitalik Buterin, which sent 300 ETH (worth $490,000 at the time) to the Kraken exchange on Sep. 19.

More positive news gives hope for Ethereum investors

On the news side, Ethereum has seen some positive surprises, such as the unexpected request for a spot Ether exchange-traded fund (ETF) by ARK Invest and 21Shares on Sep. 6. This development reduced the risks associated with excessive institutional concentration in Bitcoin, particularly if the ETF is approved.

Additionally, Canto, a layer-1 Cosmos-native blockchain, announced its migration to Ethereum's layer-2 on Sep. 18. This Zero-Knowledge, permissionless rollup, compatible with the Ethereum Virtual Machine (EVM), is primarily focused on bringing traditional finance into the Ethereum ecosystem.

Should Bitcoin's price surge be driven solely by the approval of a spot Bitcoin ETF or inflation concerns in the U.S., Ether is well-positioned to follow suit, benefiting from the same catalysts.

Meanwhile, Ethereum's primary competitors in the decentralized applications sector, namely Solana (SOL) and BSC Chain (BNB), face similar risks pertaining to ICO and securities regulations, making it unlikely for them to challenge Ethereum's dominance in terms of total value locked, or TVL, and trading volumes.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Bitcoin Cash Rallies Ahead of Upcoming Halving and Upgrade

Bitcoin short-term holders ‘panic’ amid nearly 100% unrealized loss

Bitcoin speculators are dealing with "a degree of panic" as their BTC holdings sit in unrealized loss, says Glassnode.

Bitcoin (BTC) speculators are in “panic” mode as nearly all of them are in the red, research says.

In the latest edition of its weekly newsletter, “The Week On-Chain,” analytics firm Glassnode revealed 97.5% unrealized losses among Bitcoin’s short-term holders (STHs).

Research warns of "non-trivial" Bitcoin sentiment slide

BTC price action in recent months has tested the resolve of investors, but none more so than those who bought BTC over the past three months.

STHs, which correspond to entities hodling coins for 155 days or less, have seen their aggregate cost basis fail as market support.

As Glassnode notes, as of Sep. 17, the cost basis for those not spending BTC is now $28,000 — around 5% above current spot price.

As part of its research, the firm separated the STH cohort into holders and spenders, discovering “a relationship between abrupt changes in implied (unrealized) profitability and the shift in spending by STHs (realized profitability).”

The result, it says, is what it calls a “non-trivial change in sentiment.”

“From this perspective, we can see that the cost basis of STHs who are spending fell below the cost basis of holders as the market sold off from $29k to $26k in mid-August,” “The Week On-Chain” explained.

“This suggests a degree of panic and negative sentiment has taken hold in the near term.”
Bitcoin STH holder and spender data annotated chart (screenshot). Source: Glassnode

"A degree of panic"

The findings chime with the overall sense of caution among Bitcoin traders and analysts, with many predicting a test of lower levels still to come.

Related: What volatility? Bitcoin price dismisses FOMC, Mt. Gox with $26.7K dip

Opinion is far from unanimous, however, as optimists eye a change of fortunes for BTC price performance beginning in Q4.

As Cointelegraph reported earlier this week, meanwhile, classic sentiment gauge, the Crypto Fear & Greed Index, remains only modestly bearish at current price levels.

Crypto Fear & Greed Index (screenshot). Source: Alternative.me

Nonetheless, for STHs, the threat of permanent loss appears to feel all too real.

Glassnode analysts unveiled a trend confidence metric, which subtracts spender cost basis from holder cost basis and divides by the BTC price.

“The Bitcoin market is experiencing a non-trivial shift in sentiment, with almost all Short-Term Holders now underwater on their supply,” the firm wrote in part of its conclusion.

“This has resulted in a negative shift in sentiment, with investors spending now having a lower cost basis than the rest of the cohort. This suggests a degree of panic is dominating this group, which is the first time since FTX collapsed.”
Bitcoin new investor confidence annotated chart (screenshot). Source: Glassnode

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin Cash Rallies Ahead of Upcoming Halving and Upgrade