After the closing of the day last night, it briefly fell below $ 30,000. bitcoin Reacting from this region, it rose as high as $32600 today.
As of our news hour, Bitcoin is trading at $31600 with a 5% premium. altcoins trying to erase yesterday’s losses.
Data analysis company Glassnode, which published the weekly Bitcoin report, stated that the main reason for the weakness in Bitcoin is interest rate increases.
It has been a difficult week for the bulls in the report, where the network profitability has fallen by more than 10%.
“There is a contraction in money flow to ETF products and stablecoin money supply. Investors did not flock to the stock markets to buy the bottom even though the price moved sharply to the downside.”
Is Bitcoin’s continued correlation with the US stock markets really a good hedge against inflation? While causing questions, the following statements were included in the summary and conclusion section of the Glassnode report.
“As the bitcoin market matures and more institutional capital enters the space, it has become increasingly evident that the market is responding to macroeconomic shocks and tighter monetary conditions.
There seems to be a collective weakness in almost all industries. This appears to be mainly due to weak investor sentiment and a willingness to avoid risk rather than derivatives leading to leverage.
Also, a significant contraction in stablecoin supply, especially USDC, indicates a clear exit from the market.
Bitcoin remains highly correlated with broader economic conditions. This shows that the road ahead may unfortunately be challenging, at least for now.”