For the past two years, investors in Asia have generally been sellers, while US and EU investors have been buyers, with one brief exception.
On-chain activity on the Bitcoin network still appears to be in a bear market, while buyers in the United States and the European Union are struggling to stay ahead of Asian sellers.
The latest report from blockchain analytics firm Glassnode on weekly activity on the Bitcoin (BTC) network shows that Bitcoin’s price has been stable in a tight $5,000 range between $37,680 and $42,312. However, on March 22, the price of Bitcoin suddenly surged, pushing the price to a two-week high.
Overall, the Bitcoin network is in a clear state of stagnation, according to Glassnode’s weekly review:
Bitcoin network utilization and on-chain activity remain in bear market territory, albeit recovering.
The study concluded that there are stark differences in the behavior of the average BTC investor based on geography. Notably, US and EU investors tend to be buyers, while Asian investors tend to be sellers. This trend has been consistent since March 2020, except last November when both sides were buying in bulk.
Specifically, Glassnode researcher and report author “Checkmate” noted that U.S. and EU investors have provided broad support over the past two years, buying heavily between late 2020 and early 2021, while “both regions have seen a surge throughout May to surrendered in July.” Currently, EU buyers offer the most support.
During this #Bitcoin drop, buying pressure has been concentrated in the US and EU trading hours.
Meanwhile, most of the sell-side pressure occurred during the Asian session, indicating divergence in regional strategies.
— glassnode (@glassnode) March 21, 2022
Conversely, Glassnode reports that Asian markets have generally provided lower buying support through Q1-Q3 2021, generating significant selling pressure right now. However, on March 22, Su Zhu, co-founder of crypto investment firm Three Arrows Capital, tweeted “Asia’s highest bid for BTC,” suggesting that the short-term rise in the day’s price was led by Asian traders.
Some on-chain indicators suggest that a bear market has begun. The number of new entities (or new wallets unrelated to existing wallets) has been gradually rising since mid-2021. This is the bear market pattern that emerged from January 2018 to the first half of 2020. Currently, about 110,000 new entities are added to the Bitcoin network every day.
In a bear market, new entities grow slowly and steadily. During bullish periods, the growth of new entities has experienced large increases like January 2018 and January 2021.
Since peaking in November last year, the volume of transfers worth more than $1 million has continued to decline sharply. Glassnode warns that “a severe drop could indicate a drop in network utilization,” further suggesting we’ve entered a bear market.
As reported last week, selling pressure from Long Term Holders (LTH) has increased, but overall LTH supply remains stagnant as an equal proportion of Short Term Holder (STH) supply has been converted to LTH and the trend remains continued. The LTH supply consists of tokens that have not moved for at least 155 days.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/glassnode-selling-pressure-in-cryptocurrency-markets-is-still-dominated-by-asia/
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