Bitcoin Drops Below Active Investors Mean
- Main event, leadership changes, market impact, financial shifts, or expert insights.
- Bitcoin BTC -1.93% ’s price falls, suggesting deeper bearish phase.
- No new institutional entry, ETF flows turn negative.
Bitcoin recently dropped below the Active Investors Mean of $88.6k, placing attention on the True Market Mean of $81.9k as a critical cost-basis level, as per Glassnode analysis.
This decline signals potential market downturns, stirring concerns among investors and analysts about a possible bear trend continuation akin to past cycles.
Bitcoin has experienced a noticeable drop, breaking below the Active Investors Mean at $88,600. This roadmap, outlined by Glassnode, suggests the next critical level to monitor is the True Market Mean at $81,900.
Glassnode’s CEO Rafael Schultze-Kraft emphasizes that falling below key cost-basis levels could point towards a deeper bearish trend. A decisive breakthrough would mark a market shift echoing trends seen in earlier bear phases.
The price zone between Active Investors’ Realized Price ($88.6k) and True Market Mean ($82k) may serve as the definitive dividing range between a mild bearish phase and a full bear-market structure similar to 2022-2023. — Rafael Schultze-Kraft, CEO & Co-Founder, Glassnode
The implications for the market are extensive. Negative net flows in Bitcoin ETFs, as reported by issuers like BlackRock and Fidelity, coupled with a lack of new institutional bids, are reinforcing this downward trend.
Financial impacts are already visible, with major ETFs showing negative flows and no new institutional funding directed towards Bitcoin-related assets. Market leaders remain cautious, noting restrained retail and institutional demand.
Regulatory bodies like the SEC have not released new statements, leaving market players and observers focused on on-chain signals and the approaching True Market Mean.
Historical data from past bear markets underpin analysis, highlighting potential outcomes if Bitcoin breaks current cost-basis levels. Such patterns could result in renewed bearish sentiments, as suggested by Glassnode and other experts.
