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- Over 70% of both professional and retail investors currently view Bitcoin as priced below its true fundamental value.
- A massive 38% drop in short-term Ethereum holdings indicates that speculative “weak hands” have exited, leaving long-term believers in control.
- Bitcoin’s profit-loss metrics have officially climbed out of the “Fear” zone, signaling a transition into a renewed period of optimism.
The digital asset market is currently walking a tightrope between geopolitical tension and improving internal data. A fresh collaborative report from the research teams at Glassnode and several industry analysts suggests that while global headlines are messy, the “on-chain” reality for crypto is surprisingly sturdy.
By combining hard blockchain metrics with a survey of 100 active investors, the data paints a picture of a market that is shaking off its recent chills and preparing for a steadier climb. Right now, the price of Bitcoin and its peers isn’t just about code or adoption; it’s being steered by the high-stakes drama in the Middle East and shifting economic policies. These external shocks make short-term trading feel like a coin flip.
Growing Consensus for a Crypto Market Rebound
Nevertheless, there seems to be an obvious turn in the direction of the economy as a whole. Cautious optimism prevails in the air with the feeling that the worst macroeconomic challenges have been weathered.
Any positive change in the overall picture can make all crypto assets realize their bottom value and recover during the remaining period of the quarter. The biggest revelation in the report is the uncommon unity of the institutional and retail participants in the cryptocurrency market.
Normally, they are in complete disagreement regarding any market condition, but now, they agree. About 75 percent of institutional investors and 71 percent of retail traders agree that Bitcoin is undervalued. The basis for this claim is the Net Unrealized Profit and Loss (NUPL) indicator.
Ethereum Returns to Sustainable Growth
The NUPL indicator spent all of its time in the “Fear” zone during Q1. This shows that investors were underwater and quite worried about the situation. As we move towards the second quarter, the NUPL crosses the line back to “optimism,” which means that the market starts breathing easy.
As everyone pays attention to Bitcoin, Ethereum continues to experience “purging.” It is worth mentioning the interesting supply dynamics of ETH coins. For example, the supply of coins that were owned for less than three months, which are usually linked to speculators, decreased by 38% in Q1. On the other hand, the supply of coins owned for one year increased by 1%.
It means that tourists have been washed out of the market because of recent volatility. There are now left only strong hands that do not intend to sell their coins. They represent the solid base of the market that tightens the coin’s supply. Usually, when speculators leave the market, the price experiences a sustainable increase.
Also Read: Bitcoin Supply Drain Intensifies as Exchange Reserves Hit Record Lows
