Glassnode: Bitcoin Rally Displays Signs of Durability Amid Institutional Interest

The recent Bitcoin rally shows signs of durability, with strong engagement from new buyers and moderate profit-taking activity, according to Glassnode. Institutional inflows into Bitcoin ETFs reached $2.9 billion last week, reflecting renewed interest. Ethereum also sees new buyers but faces increased profit-taking, hinting at potential volatility ahead.

According to the crypto analytics firm Glassnode, the ongoing Bitcoin rally displays signs of ‘durability.’ The firm shared insights on the social media platform X, quoting that the activity from both ‘first buyers’ and ‘momentum buyers’ remains robust, while the profit takers are relatively less active. This trend indicates sustained interest from newer investors and those following market trends, with minimal selling pressure, underpinning the current bullish behaviour in Bitcoin’s price.

Glassnode further highlighted that U.S. spot Bitcoin exchange-traded funds (ETFs) saw a notable net inflow of 31,323 BTC, translating to approximately $2.9 billion last week. This is significant, marking it as the fifth-largest weekly Bitcoin inflow ever recorded and the third-largest in dollar value. The influx points to renewed institutional interest in Bitcoin, even as prices remain high.

At present, Bitcoin is trading at $95,370, having realised an increase of nearly 1.5% over the last 24 hours. This suggests a steady performance amidst market fluctuations, reinforcing the positive outlook established by the recent inflow of investments.

Switching gears to Ethereum (ETH), Glassnode has observed what it has termed the “first meaningful uptick” in new buyers since February this year. However, increased activity among profit takers indicates a shifting landscape, possibly contributing to a pause in Ethereum’s price recovery. Currently, Ethereum trades at $1,827, having surged over 3% in the past 24 hours.

In summary, the market’s trajectory shows some encouraging signs, particularly in the Bitcoin sector, with institutional reinvestment and a solid base of new participants. However, as always, potential investors are advised to proceed with caution, considering the volatile nature of cryptocurrency markets.