The Week Onchain Newsletter

Hashrate Hits New Highs

As global equity and bond markets continue to tread challenging ground, Bitcoin hashrate defies the odds, pushing to yet another all-time high. In this piece, we deep dive into the mining sector to assess whether the worst of the miner capitulation is over, or not.

Product

Product Update: September 2022

September was an extremely exciting month for Glassnode, engaging our entire team from engineering, data scientists, and analysts, to deploy a brand new suite of Ethereum Merge and Proof-of-Stake metrics. A brief summary of the metrics, content, and product releases for the month are as follows: * Week-on-Chain Newsletters (4x) * New

The Week Onchain Newsletter

The Great Detox

Bitcoin has once again rejected below the psychological $20k region, plunging Short-Term Holders into severe unrealized loss. However, HODLers remain steadfast, with numerous metrics displaying a full cycle detox.

Product

Product Update: August 2022

August has been another busy month for Glassnode metric, content, and product releases. A brief summary for the month is as follows: * Week-on-Chain Newsletters (5x) covering the bear market rally, and speculation on the Ethereum Merge in derivatives markets. * New Assets Supported (4x): APE, SHIB, SAND and stETH * Ethereum transaction

Market Pulse

Cycle Top/Bottom Detection: Utilizing Drilling Concepts in On-chain Analysis

In this Market Pulse, we leverage principles used in Bitcoin behavioural analysis to develop a framework analogous to Measurement While Drilling (MWD) methods. The goal of this framework is to measure investors' resilience to price volatility, and develop a cycle extreme detection model.

The Week Onchain Newsletter

The Merge: A Feat of Engineering

This week saw the successful deployment of one of the most impressive feats of engineering in the blockchain industry: The Ethereum Merge. We explore it as it happened, on-chain.

Ethereum and DeFi

Before the Merge: Analysing the Ethereum Beacon Chain

With the Ethereum Merge on the horizon, we dive into Ethereum a suite of new metrics which describe Proof-of-Stake consensus, and profile the performance of the Beacon Chain since genesis.

The Week Onchain Newsletter

A Rally Off the Bear Market Lows

After the market rejected a rally to $24.5k, Bitcoin prices have dropped to $18.5k setting the second lowest low of the bear cycle. This has plunged over 11.8% of the supply back into an unrealized loss, allowing us to survey the risk of downside, and the possibility of bottom formation.

The Week Onchain Newsletter

A Trial by Fire

Amidst a persistent contraction in global liquidity, Bitcoin Short-Term Holders find themselves under immense pressure, with Bitcoin markets struggling to hold the psychological $20k support level.

The Week Onchain Newsletter

Bitcoin Barely Hanging On

Near-term weakness continues to haunt numerous Bitcoin fundamentals, with prices faltering amidst minimal excess sell-side pressure. Investors who are spending appear to be taking advantage of any and all exit liquidity offered.

The Week Onchain Newsletter

A Bear Market Mirage

The Bitcoin market recently experienced a wave of short relief, with prices trading above the Realized Price for 23 consecutive days. However, weakness in the underlying network activity has manifested as a sell-off this week, with prices falling once again below this key cost basis level.

The Week Onchain Newsletter

The Coin Maturity Gauntlet

During the recent capitulation event, Bitcoin migrated from weaker hands, to those stepping in at the lows. In this edition, we explore how we can assess the migration of conviction by use of coin age bands.

The Week Onchain Newsletter

Betting on the Merge

As Bitcoin and Ethereum derivative markets mature, sophisticated trade positions can be established using both options and futures. The Ethereum Merge presents an opportunity to observe such market positioning at a large scale.

Market Pulse

Market Pulse: Are Bitcoin Long-Term Holders Spending Their Coins?

As the market rallies from the recent lows, we inspect whether Bitcoin Long-Term Holders are taking the opportunity to exit positions at or above their aggregate cost basis.

The Week Onchain Newsletter

Beginnings of a Bear Market Rally?

Both BTC and ETH have rallied, coming off extremely oversold conditions, and spurred on by risk-on sentiment following the July FOMC meeting. Attention now turns to whether it is a bear market relief rally, or the start of a sustained bullish impulse.

Analysis & Research

A Challenging Bear Market

The 2022 bear market has been exceptionally challening for digital asset investors, with Bitcoin and Ethereum down 75% to 85% from the ATHs. In this report, we explore the mechanics and performance of BTC, ETH and the wider digital asset ecosystem in 2022.

The Week Onchain Newsletter

Conviction Through Confluence

After a month of consolidation around the $20k zone, Bitcoin prices have experienced a much awaited relief rally. Momentum in the short term is favorable, however remains weighed down by longer-term macro indicators that time may be required to form a firm foundation.

The Week Onchain Newsletter

Trading Below The Realized Price

Bitcoin prices have now traded below the Realized Price for over a month, with many signals that a deep and complete capitulation has occurred. As a result, numerous signals indicate that genuine bottom formation could be underway.

The Week Onchain Newsletter

Pressure Builds on Diamond Hands

With many signals suggesting a widespread capitulation has taken place, attention turns to whether a Bitcoin bottom is forming. Here, we analyse the characteristics and duration of previous bear cycles, to assess what may lie on the road ahead.

Market Pulse

Market Pulse: ETH 2.0 Stakers Are Underwater

The Ethereum 2.0 upgrade is one of the most anticipated, and most watched events in digital asset industry. However, with staked ETH locked up, and market prices declining over 75%, the vast majority of stakers are now firmly underwater on their position.

The Week Onchain Newsletter

The Expulsion of Bitcoin Tourists

Bitcoin has locked in one of the worst monthly price performances in history, with prices trading down -37.9% in June. Bitcoin has seen a near complete expulsion of market tourists, leaving the resolve of HODLers as the last line standing.

The Week Onchain Newsletter

Is This Time Different?

Almost all macro indicators for Bitcoin are at all-time lows, signalling potential floor formation. Many are even trading at levels with single digit percentage points of prior history at similar levels. With numerous floor formation signals flashing, the question is, will this time be different?

Analysis & Research

A Bear of Historic Proportions

2022 has been a tough year for Bitcoin and Ethereum, with valuations being hit hard and fast. With the extensive duration , and scale of capital destruction of the prevailing, it can reasonably be argued that 2022 is the most significant bear market in digital asset history.

The Week Onchain Newsletter

Falling Dominoes: Capitulations Across the Board

The Bitcoin market has reeled from a massive deleveraging event this week, falling below the 2017 $20k ATH. Both on-chain DeFi markets, and off-chain entities deleveraged, as exchanges, lenders, and hedge funds were rendered insolvent, illiquid, or liquidated.

Ethereum and DeFi

The Great DeFi Deleveraging

The Ethereum DeFi market is undergoing a dramatic deleveraging, with over $124B in capital flushed out in just six weeks. The Ethereum investor base is now heavily underwater on spot positions, and is locking in historically large realized losses.