lassnode has recently shared a report that clearly shows that bitcoin investor sentiment has now shifted from speculation to a less risky and more balanced and rational approach, as more uncertainty arises in global markets.
Declining Speculative Interest
Moreover, there is a decline in trading and profit taking activity. This is highlighted by the fact that the funding rates for perpetual futures have normalized and in some cases have been negative. This suggests that there is a decline in people’s interest in the crypto market for speculation purposes with high risks, another indicator that shows that retail is currently uninterested in the markets.
Reduced Liquidation Volumes
Since the all-time high recorded in March, there has been a significant drop in liquidation volumes of perpetual contracts, which highlights the argument that there is less speculation and retail trading activities.
Slowing Net Capital Inflows
Over the past few months, there have been signs of moderation in the net capital flows into Bitcoin, indicating the equilibrium in the process of profit realization and profit taking among the investors. One ca argue that this indicates that bitcoin is currently in an accumulation period.
Speculation Cools
According to the Glassnode report, there is a possibility of a shift in speculative interest in the entire crypto market with spot markets likely to determine the near-term prices. This change signifies that the investors in Bitcoin and especially the alt coins are now more responsible and careful in their investments.
