Thread by @BalthasarBecker

The main points of the Glassnode newsletter of 5 June:

1/9 🧵@glassnode Insights: Stagnant digital asset prices and underlying indicators suggest a shift towards risk-off capital rotation, with an increasing preference for stablecoin capital. #CryptoMarket #RiskOff #Glassnode

2/9 Despite flat $ETH price since mid-March, beneath the surface, growing divergences hint at a risk-off environment, with depressed trade volumes and automated DeFi usage. #Ethereum #DeFi

3/9 High trading volumes on Uniswap, driven mainly by automated arbitrage, indicates much of the exchange's volume may not be organic. This activity, although controversial, benefits Ethereum validators. #Uniswap #Arbitrage #EthereumValidators

4/9 Capital rotation appears to shift towards lower-risk assets, including stablecoins and $BTC, evidenced by reduced activity in Ethereum Futures markets. #RiskOffRotation #Bitcoin

5/9 Since April 2023, there's been a sell-side dominance with inflows of $BTC and $ETH exceeding those of stablecoins. This coincides with the start of the current market correction. #BTC #ETH #MarketCorrection

6/9 Capital inflow into the crypto markets, primarily into $BTC and $ETH, has been offset by significant outflows from stablecoins, predominantly $USDC and $BUSD. #CryptoMarket #CapitalInflows #BTC #ETH

7/9 $USDT has absorbed a significant proportion of these outflows, hitting an all-time high supply of $83.1B. This reflects a geographical divergence, with US entities preferring USDC. #USDT #USDC

8/9 There is a visible shift in YoY BTC supply change based on geographical regions, with US supply dominance falling by 11% since mid-2022. #BTC #GeographicalShift

9/9 The crypto market trends indicate a risk-off environment, with capital concentrating in more liquid assets and a preference for stablecoin capital. #CryptoTrends #RiskOff #EndThread