Glassnode: Active Addresses Decline, ETF Flows Improve, Bitcoin Enters Holding Pattern
BlockBeats News, May 26th. Over the past week, the price of Bitcoin dropped from around $79,000 to a local low of about $74,000, then rebounded to near $77,000. The price momentum decreased by 21.7%, reflecting a weak price trend and increasing selling pressure. At the same time, spot CVD and perpetual CVD increased by 77.2% and 35.5% respectively, indicating a relief in selling pressure and a trend towards market equilibrium. Market activity has also cooled down, with spot trading volume decreasing by 10% and open interest in futures contracts dropping by 3.5%, showing a weakening speculative interest and a more cautious market environment.
Nevertheless, signs of renewed risk appetite are beginning to emerge. The long position funding rate soared by 135.4%, highlighting strong demand for long exposure and an improvement in bullish sentiment. In the options market, the 25-Delta Skew slightly increased, indicating a slight uptick in demand for downside protection, while open interest remained stable, suggesting positions are still intact.
Looking at the traditional financial markets, the MVRV of U.S. spot ETFs increased by 0.69%, indicating a slight expansion in ETF holders' unrealized gains. Meanwhile, ETF net flows improved by 28.9%, easing fund outflows and stabilizing sentiment. However, ETF trading volume decreased by 22.9%, signaling a slowdown in speculative activity.
On the network activity front, the number of daily active addresses and the transfer volume adjusted by entity slightly decreased, suggesting that the market may be entering a consolidation phase or experiencing a decline in investor activity. Liquidity indicators show a more stable liquidity condition, indicating a higher level of confidence in the market and lower speculative activity.
However, profit indicators suggest that market pressure may be increasing. The net Unrealized Profit/Loss ratio has significantly decreased, with the realized Profit/Loss ratio indicating that loss realization has exceeded profit realization, reflecting a cautious and potentially bearish market sentiment. Overall, the market is showing signs of moderation and consolidation, characterized by reduced activity, cautious sentiment, and a certain level of risk appetite. This complex situation underscores the importance of closely monitoring market dynamics and investor behavior.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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Interpretation - What is the low-frequency spectrum obtained by SpaceX for Starlink Mobile?
Harshita Mary Varghese, Reuters, October 9 - SpaceX SPCX.O has agreed to acquire a portfolio of low-band spectrum licenses covering the entire United States, in a deal reportedly valued at $8 billion. The company is seeking to expand its business beyond satellite internet and become a major competitor in the U.S. mobile market. SpaceX revealed its plans to enter the mobile service sector during its first earnings call in August. This announcement briefly weighed on the company’s stock price, and shares of the three major U.S. wireless carriers—AT&T, T-Mobile, and Verizon—were also affected as investors assessed the potential competitive threat. What is low-band spectrum? Low-band spectrum refers to radio waves that travel further and penetrate buildings better compared to higher frequencies, making them suitable for wide-area mobile network coverage. In contrast, mid-band and high-band spectrums can transmit more data at faster speeds but have a smaller coverage area. SpaceX has agreed to purchase up to 14 MHz of paired 800 MHz low-band spectrum licenses from Grain Management and plans to develop a hybrid architecture for Starlink Mobile, combining terrestrial infrastructure with satellite connectivity. How is the U.S. spectrum licensing system structured? Commercial spectrum is a scarce resource in the U.S., regulated by the Federal Communications Commission (FCC), which typically allocates licenses for specific frequencies and geographic areas via auctions or other authorization processes. License holders must comply with technical rules and deployment requirements, and transfers of licenses usually require regulatory approval before obligations are fulfilled. The spectrum license deal recently struck by SpaceX is pending FCC approval. Which low-band spectrum do the three major carriers hold? AT&T’s low-band spectrum includes the 700 MHz and 850 MHz bands, as well as 600 MHz spectrum licenses acquired this July through the purchase of EchoStar. Verizon holds spectrum in the 700 MHz and 850 MHz bands, while T-Mobile’s low-band holdings include 600 MHz and 700 MHz spectrum. What are the plans for STARLINK MOBILE? The company plans to integrate these spectrum licenses into its next-generation satellite system, while also deploying terrestrial radio equipment and antennas on communication towers and rooftops. The FCC this week approved Starlink Mobile’s application for its second-generation (Gen2) satellite constellation, authorizing SpaceX to launch 15,000 satellites globally optimized for the 2 GHz spectrum.
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