Glassnode Addresses Bitcoin’s State in the Crypto Market

The crypto market seems to be suffering another correction, and most of the important coins are trading in the red today. At the moment of writing this article, Bitcoin is also trading in the red.

The king coin is currently priced at $39,021.

The co-founders of leading analytics firm Glassnode are warning Bitcoin traders that the current macroeconomic backdrop could be about to trigger another sell-off event for BTC.

Glassnode’s latest newsletter features Jan Happel and Yann Allemann saying that Bitcoin’s correlation to risk-on assets remains high, suggesting that a correction in the US stock market will likely drag down BTC as well.

“Our analysis continues to suggest that this renewed sensitivity to market risks and a higher likelihood of stronger drawdowns has not been due to a lack of confidence in [BTC] but rather due to a charged macroeconomic environment.”

According to the Glassnode co-founders, the macroeconomic landscape is looking pretty shaky after the Federal Reserve announced the tapering of its balance sheet to the tune of $95 billion per month in an effort to combat persistent inflation.

More than that, it’s also important to note the fact that they also mention the looming risk that Russia’s military aggression could expand and target territories of the European Union.

As a response to the risky environment, the Glassnode execs say that over $100 million flowed out of the crypto markets last week.

“Zooming into the crypto space, last week saw $134 million in fund outflows, marking the second-highest weekly outflows in 2022. Solana received $3.7 million in inflows, and altcoins (multi-asset) recorded $5 million in inflows, while a massive $131 million flowed out of Bitcoin.”

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