Low Volatility May Signal Incoming Crypto Bull Market: Glassnode Report

• Bitcoin and Ether’s prices and on-chain activity have been experiencing low volatility since the year began.
• Glassnode’s lead analyst suggests that periods of low market activity are often followed by volatility storms.
• The firm released its first on-chain video report of 2023 on Tuesday, analyzing what could be data-based indicators of an incoming crypto bull market.

Bitcoin’s yearly start has been characterized by low volatility and little activity in both the price and on-chain activity according to Glassnode’s first on-chain video report of 2023. The report, released on Tuesday, analyzed what could be data-based indicators of an incoming crypto bull market.

Glassnode’s lead analyst James Check said that Bitcoin had been trading within a roughly $550 range since December 17th, a mere 3.4% trading range for almost a month. He noted that this was „quite remarkable“ and that other periods of low market activity in the past have often been followed by volatility storms.

The report also highlighted that both Bitcoin and Ether’s price and on-chain activity have seen little volatility since the year began. It noted that investors should be aware of the underlying on-chain trends and how they could be used to predict upcoming market movements.

Glassnode’s report pointed out that the last month of 2020 saw a dramatic increase in on-chain activity due to the surge of institutional investors entering the market. In the first week of 2021, Bitcoin’s daily active addresses (DAA) saw a peak of over 1 million. This was the first time that this had happened since February 2020 and was a sign of a rapidly growing network.

The report also noted that the number of Bitcoin whales, or entities that hold large amounts of cryptocurrency, has been steadily increasing since the start of the year. The number of whales with between 100 and 1,000 BTC in their wallets hit a new all-time high of 6,900 on January 11.

The report concluded that the low market activity of the past month may indicate that investors are waiting for the right time to enter the market. It suggested that if the current low volatility continues, it could potentially lead to an explosive bull market in the near future.

Overall, Glassnode’s report provides insight into what could be signs of an upcoming bull market in the cryptocurrency market. Investors should be aware of the underlying on-chain trends and how they could be used to predict upcoming market movements. The low volatility seen in the past month may signal an incoming bull market and investors should be prepared for the volatility that may come with it.