Glassnode: recent surge in Bitcoin spot trading was a panic-driven blip, not fresh buying On-chain analytics firm Glassnode says a sharp uptick in Bitcoin Spot Volume during the recent price drawdown was short-lived — a surge of trading activity tied to panic and liquidation, not a durable wave of conviction buying. What Glassnode measured - The Bitcoin Spot Volume metric (tracked as a 7-day moving average) measures how much BTC is being traded on spot exchanges. Higher values signal more spot trading activity; lower values imply fading investor attention. - Glassnode’s weekly report shows a notable spike in this 7-day MA during the sell-off toward the $60,000 area. That spike indicates heavy trading during the volatile move — but it didn’t last. Why the spike mattered — and why it didn’t - According to Glassnode, the increase was driven largely by panic reaction and liquidation churn, not sustained demand from new buyers. - The indicator’s trajectory supports that view: the rise was sharp but quickly cooled off. “The lack of follow-through indicates that absorption remains shallow relative to the scale of selling pressure,” Glassnode writes. - Historically, Bitcoin price moves tend to stick only when supported by sustained spot trading. For now, Glassnode concludes, “spot flows reflect engagement during stress, not a decisive shift toward constructive demand.” Where price found support - Glassnode also examined Bitcoin through the UTXO Realized Price Distribution (URPD), which maps the price levels at which current coins were last acquired. - The URPD shows a thick supply (accumulation) zone between $60,000 and $72,000 created by buying in the first half of 2024. Bitcoin’s stabilization inside that band suggests prior buyers in this range may be defending positions. Current snapshot and what to watch - Bitcoin recently slipped to about $65,900. - Key things to monitor: whether spot volume sustains higher levels (indicating real demand and absorption) and how the URPD evolves around the $60k–$72k band — both will help reveal whether this was a short-term stress event or the start of more durable buying pressure. Read more AI-generated news on: undefined/news

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