Uncertainty in cryptocurrencies continues and investors are feeling a lot of pressure at this point. However, the stable course of crypto supply in on-chain data shows that a storm can be overcome. According to the latest report published by on-chain data provider Glassnode, cryptocurrencies and Bitcoin maintain their strong stance.
“There Is Stability In The Market”
Glassnode says the data shows that both spot assets and fund flows remain stable. For this reason, it is underlined that there is no sign of mass sales stemming from fear. At this point, Glassnode also states that the situation we are in indicates an uncertainty due to the tides in the dollar.
On the other hand, considering that volatility may occur due to the expectations that the US Federal Reserve will increase interest rates, investors are moving away from leveraged products and therefore the use of leverage is decreasing.
According to Glassnode, this indicates that the market may remain sideways for a while, thus pulling back some Bitcoin price expectations. Futures expiring at the end of 2022 currently have a strike price of $44,200, which represents a 6% annual premium, which Glassnode describes as “very modest”.
FED Decision in March
In the statements made by Glassnode at this point, it is stated that investors have reduced the use of leverage to hedge risk by closely following the expected FED interest rate hikes in March. However, on-chain data balances this situation, and it is stated that a storm can be overcome.
In addition, Glassnode states that long-term investors do not intend to sell, which creates a strong community. In other words, when we look at the data of Glassnode, it is thought that the crypto money market can survive the storm caused by the FED, although high price increases are not expected in the near term.