After the recent wave memecoin frauds and macroeconomic insecurity, investors have a diminished appetite for speculation on the crypto market.
Bitcoin’s hot-supply metric measures the Bitcoin supply (BTCFrom 5.9% on November 30 to 2.3% by March 20, the number of people aged under one week is down more than 50%. Glassnode The data show.
Ryan Lee, Bitget Research’s chief analyst, said that the metric decline indicates a shift in investor positioning to a safer position amid recent market volatility.
Bitcoin supply hot metric. Source: Glassnode
Global trade tensions The analyst said that the fluctuating dynamics of markets are forcing investors to rethink their strategies.
“During uncertain times, investors are not only seeking security but are also focused on rational decision-making. In many instances, that rational choice is represented by Bitcoin.”
“This trend isn’t solely rooted in fear, it also reflects a more pragmatic approach to investing,” Explained Lee
Related: Bitcoin experiencing ‘shakeout,’ not end of 4-year cycle: Analysts
The stablecoin ratio (SSR), that measures the relationship between Bitcoin supply and stablecoins, suggests investors remain hesitant about taking on new significant positions.
BTC SSR ratio, 1-year chart. Source: Glassnode
SSR stood at 8, a record low for over four months. It was last attained at the beginning November 2024 at $67,000 when Bitcoin first traded. post-election rally BTC has reached an all-time record of $109,000.
SSR values lower than 10 have historically been considered low. This indicates that stablecoins are not as popular among investors when compared with Bitcoin’s current market capitalization.
According to Enmanuel Cardozo of Brickken’s real-world assets (RWAs) tokenization platform, the cautious positioning among crypto investors is in line with that held by traditional market players.
According to Cointelegraph, the market analyst:
“US stock market trends often set the tone for risk-on assets like crypto, and right now, although the macro picture is still uncertain, these corrections are normal and just highlight where the real value lies as the market continues to mature and educate itself.”
Asset performance after Trump’s administration. Source: Thomas Fahrer
Investor caution is growing despite the increasing investor concern Bitcoin outperformed all major Global assets have increased since the election of Donald Trump, such as stocks, bonds, US Treasury securities, gold and real estate.
Related: Whale closes $516M 40x Bitcoin short, pockets $9.4M profit in 8 days
It is a speculative urge. “fading” among crypto investors
Technical analyst Kyledoops wrote that the cooldown of Bitcoin’s hot supply shows a faltering appetite for speculation in his March 21 article. post:
“Speculative appetite is fading, and the market is cooling off.”
“This means fewer fresh coins in circulation, reduced liquidity, and lower market participation,” Add the Analyst
Despite the present lack of interest in risk, analysts are optimistic about Bitcoin’s future price path through 2025. ranging from $160,000 You can also find out more about the following: above $180,000.
Magazine: ETH may bottom at $1.6K, SEC delays multiple crypto ETFs, and more: Hodler’s Digest, March 9–15
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Source: cointelegraph.com
