The cryptocurrency market has been facing a period of uncertainty and volatility in recent months, with conflicting signals about selling pressure in the market. However, recent reports from blockchain analytics firms Glassnode and Chainalysis suggest that there may be some signs of waning selling pressure.
Glassnode’s latest report on the weekly activity of the Bitcoin network indicates that the price of the largest crypto by market cap has remained within a tight range. This suggests that buyers and sellers are currently in equilibrium, with neither party exerting significant selling pressure on the market.
Meanwhile, Chainalysis data highlights an increase in Ethereum (ETH) inflows to exchanges since the beginning of the year. The number of ETH on exchanges rose before dropping somewhat since. This suggests an increased selling pressure in the market, as investors look to offload their holdings.
Despite the conflicting signals, the overall trend in the crypto market remains bearish, with more than $1 trillion in value lost this year alone. Some smaller coins have declined by as much as 90%, causing even long-time investors to panic sell.
As the market continues to face uncertainty, it is crucial for investors to stay vigilant and informed about the latest developments. With conflicting signals about selling pressure, it is difficult to predict how the market will behave in the coming weeks. However, Glassnode and Chainalysis reports provide some insight into the current state of the market and highlight the need for caution in investing in cryptocurrencies.
