Bitcoin continues to move in a narrow range despite global financial markets showing encouraging performance, reflecting the lack of new catalysts to propel the world's largest digital asset higher.
At the time of writing, Bitcoin is at $64,480, down 0.02% since it opened early Thursday in Asian trading.
Glassnode's latest report states that the current situation shows a sharp contrast as major global stock indexes continue to record highs and gold prices remain strong, but Bitcoin has yet to follow the momentum.
According to Glassnode, one of the most important developments is the market reaction after the theft incident involving several Coldcard hardware wallets.
Although a large amount of Bitcoin that had not moved for over a year was moved to new addresses as a security measure, the activity had almost no impact on the market price.
Over the course of three days, about 119,000 BTC were moved, but only a small portion of it was sent to exchanges for sale.
This situation suggests that most investors simply changed the location of their assets without releasing their holdings.
At the same time, Glassnode saw several indicators often associated with market policy formation begin to emerge.
The Seller Exhaustion Constant indicator is reported to be at its lowest level for the current cycle, indicating that selling pressure is easing.
However, the reading is still not as low as it was during the previous bear market, indicating that the policy formation process may not be fully completed.
While the selling pressure is easing, Glassnode believes that the most important factor still missing is demand from institutional investors.
Net outflows from the US Bitcoin Spot ETF reached around 65,800 BTC in June, making it the largest monthly outflow ever recorded.
Buying by companies that hold Bitcoin as a treasury asset was not enough to offset the outflow.
Glassnode also noted that the Bitcoin options market remained calm as expectations of price volatility were low.
While this has been a sign of larger price movements in the past, the lack of new demand from institutions means Bitcoin is expected to continue to move sideways until a catalyst emerges that can restore investor confidence.
