In a recent report, Glassnode highlighted that although the realized cap has reached a new peak, the monthly growth rate for this metric has slumped to just 0.9% month on month. This signifies a conservative sentiment in the market. The realized cap serves as a reflection of the total value of all Bitcoin at the price they were last traded, thus offering a glimpse into Bitcoin’s economic activity. The slowing growth rate underlines a positive yet diminishing capital inflow, possibly hinting at fewer new investors or less activity from existing ones.

In addition to this, Glassnode’s realized profit and loss graph demonstrated a drastic 40% drop, indicating significant profit-taking or loss realization. The analytics firm explained this as a sign of a potential slowdown in investor activity, often leading to a consolidation phase as the market seeks a new balance.

While newcomers may be waiting in the wings, it appears existing investors are adopting a cautious stance due to the current short-term holder’s realized price. Data from CryptoQuant suggests that the short-term realized price stands at $91,600. With BTC presently hovering below this mark, it suggests short-term holders are in a loss, potentially leading to increased selling pressure if they choose to cut their losses.

Furthermore, Bitcoin’s short-term holder market value to realized value has stayed below 1, a figure traditionally associated with buying opportunities. This further substantiates that short-term holders are operating at a loss.

Data reveals a split in sentiment between US and Korean Bitcoin traders. The Coinbase premium, reflecting US trading, recently surged, indicating robust US demand and potential Bitcoin price increases. In contrast, the Kimchi premium index dipped during the correction, suggesting a dip in retail engagement amongst Korean traders.

This uneven demand is reflected in Bitcoin’s recent price fluctuation, with the cryptocurrency’s price swinging between a narrow range of $85,440-$82,750 since April 11. On the 4-hour chart, BTC has managed to maintain the support of the 50-day, 100-day, and 200-day moving averages. However, on the 1-day chart, these indicators are posing resistance to the bullish structure.

This article is not intended as investment advice or recommendations. All trading and investment moves carry risk, and readers should conduct their own research before making a decision.

The post Bitcoin Buyers Testing the Waters Amid Uncertainty Until $90K Stands as Support appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

During the past weekend, the world of cryptocurrency witnessed a tremendous decline, wiping out over $400 billion from its total value. The downfall was a reaction to a series of economic decisions by former U.S. President Donald Trump. He imposed a 25% tariff on imports from Canada and Mexico, including energy commodities like oil and natural gas, along with a 10% tax on several goods produced in China. This was his attempt to rectify trade imbalances and combat intellectual property theft. Consequently, the affected nations retaliated with their own set of levies on U.S. goods.

The cryptocurrency market reacted to this brewing trade conflict by plummeting 12% at the last count, leading to over $2.2 billion in liquidations. Interestingly, as the Bitcoin price fell, the Kimchi premium ascended, indicating a possible change in trade patterns.

South Korea’s stringent capital controls give rise to the Kimchi premium by creating an imbalance that minimizes arbitrage opportunities. It becomes nearly infeasible for cryptocurrency purchased outside the country to be resold within it. Traditionally, a high premium signaled a high demand from Korean investors for Bitcoin. Analysts, however, argue that the recent rise is not a result of local buying but a reaction to external factors, with the strengthening U.S. Dollar Index (DXY) being the primary suspect.

Ki Young Ju, Blockchain researcher and CEO of CryptoQuant, observed that the premium rose when Bitcoin hit its local low point, not because Korean traders were buying the dip, but because the cryptocurrency was being converted into U.S. dollars. This implies that investors were shedding their holdings in response to larger market pressures instead of accumulating Bitcoin.

The U.S. dollar has seen considerable strengthening recently, creating a downward pull on the Bitcoin price. Consequently, many traders in South Korea have been shifting their coins into USD rather than the Korean won, unintentionally expanding the gap in Bitcoin’s price between Korean and international exchanges.

“Few Koreans are converting BTC into KRW,” Ju noted on Twitter. “Other countries are likely seeing a similar trend.”

The post South Korean Bitcoin Premium Peaks at 3-Year High Amidst Market Chaos appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.