Bitcoin Market Overview
This week, Bitcoin traded within a narrow 5.4% range, fluctuating between $57,168 and $60,265. Notably, Bitcoin has sustained a market capitalization above $1 trillion for a full week—a milestone requiring each BTC to stay above $53,566. This underscores strong market confidence in Bitcoin and the broader crypto asset class.
Key observations:
- Chain activity: Over 10% of circulating supply (198K BTC) transacted above the $1T threshold.
- Miners: Resumed accumulation, with nearly all on-chain metrics resetting.
- Derivatives: Open interest hit a record high ($23.1B), while trading volume and short liquidations declined.
Trillion-Dollar Market Cap as a Critical Support Level
URPD Indicator Analysis
The URPD metric (UTXO Realized Price Distribution) maps transaction volume across price clusters, revealing strong support/resistance zones.
- **$1T+ threshold**: 198K BTC transacted (10.6% of circulating supply), forming one of the strongest support levels since the $11K–$12K price range.
- Peak volume: 297K BTC traded between $58.5K–$59.1K.
- Average volume: 152K BTC per price band—higher than most historical ranges.
👉 Explore Bitcoin’s on-chain metrics
Adjusted Transaction Volume
Using Glassnode’s Entity-Adjusted (EA) algorithm (filters economically insignificant transfers):
- 2019–2020: Daily EA settlements averaged $1.7B.
- 2021: Daily EA settlements surged 720% to $12.25B, aligning with price appreciation and validating bull market liquidity.
On-Chain Insights
Miner Behavior
- Net position change: Miners are holding newly minted BTC (green signals on net accumulation).
- Impact: Though miner sales are minor versus daily volume, their holding patterns reflect bullish sentiment.
Adjusted SOPR (Profit-Taking Metric)
- Reset to 1.0 this week indicates reduced profit-taking and renewed holder confidence.
- Declining peaks in aSOPR over 3 months suggest long-term conviction amid fewer sell-offs.
Wealth Distribution: LTH vs. STH
- STHs accumulated 440K more BTC than LTHs spent in 6 months, signaling robust new demand.
- LTHs hold 66% of circulating supply (vs. 58% in 2017), highlighting stronger hodling in this cycle.
👉 Understand Bitcoin holder dynamics
Derivatives Market
Futures Trends
- Open interest: Record-high $23.1B (Binance + OKEx dominate 32% of contracts).
- Volume: Declined since March, with neutral funding rates and fewer short liquidations.
- Strategy: "Cash and carry" trades dominate—traders lock in premiums via spot longs/futures shorts.
Weekly Spotlight: Compound Token (COMP)
DeFi Revival
- Price surge: COMP doubled from $227 to $540, nearing its ATH ($564.81).
On-chain growth:
- 23K new non-zero balance addresses (1.5% increase).
- Daily transactions rebounded to 200K–300K COMP.
- Exchange balances rose 20% (41.1K COMP deposited this week).
FAQ
Q1: Why is Bitcoin’s $1T market cap significant?
A1: It reflects institutional adoption and acts as a psychological support level, backed by high on-chain transaction volume.
Q2: How do miner accumulation patterns affect BTC price?
A2: Reduced selling pressure from miners often precedes bullish momentum, as seen in past cycles.
Q3: What does a neutral aSOPR indicate?
A3: It suggests a balance between profit-taking and hodling, typical during healthy consolidations.
Q4: Are derivatives markets signaling a BTC top?
A4: Not necessarily—high open interest with low volume/liquidations points to arbitrage strategies, not speculation.
Q5: What drove COMP’s recent price surge?
A5: Renewed DeFi interest, address growth, and trading volume matching previous ATH conditions.
Data sources: Glassnode, Binance, OKEx. Analysis as of March 2024.