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Blockchain Indicator Suggests Bitcoin Could Be Close to Bottoming Out
Bitcoin looks undervalued relative to the annualized dollar value of coin dormancy.
Updated May 11, 2023, 4:39 p.m. Published Jan 12, 2022, 7:23 a.m.
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A historically reliable blockchain indicator suggests bitcoin may be in the final stages of a bearish trend, having lost nearly 40% of its value in the past two months.
- The entity-adjusted dormancy flow, a ratio of cryptocurrency's going market value to the annualized dollar value of coin dormancy, has dropped below $250,000. Dormancy refers to the average number of days each coin transacted remained dormant or unmoved, a gauge of market's spending pattern.
- The area under $250,000 has marked major price bottoms in the past, as seen in the featured image provided by data analytics firm Glassnode.
- "Entity-adjusted dormancy flow recently bottomed out, showing a full reset of the metric. These events historically print at the cyclical bottom," Glassnode said in a report published on Monday.
- "Low dormancy flow values indicate moments where market cap is undervalued relative to the yearly sum of realized dormancy, indicating moments where bitcoin is a value price," Glassnode added.
- Market capitalization is calculated by multiplying the total number of coins mined by the price of a single coin at any given time. At press time, bitcoin's market capitalization was $809.98 billion.
- Bitcoin bottomed out in July 2021 and began a new bull run with the metric falling into the green zone. The cryptocurrency hit record highs near $69,000 on Nov. 10.
- While the indicator has flipped bullish again, macro factors can play spoilsport. The U.S. December consumer price index scheduled for release at 13:30 UTC may inject volatility into the market. A higher-than-expected reading of 7.1% may spur bets of faster tightening by the U.S. Federal Reserve and put fresh selling pressure on bitcoin.
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KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
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Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold
Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash.
What to know:
- During recent geopolitical tensions, Bitcoin lost 6.6% of its value, while gold rose 8.6%, demonstrating bitcoin's vulnerability in times of market stress.
- Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash, contrary to its reputation as a stable digital asset.
- Gold remains the preferred hedge for short-term risks, while bitcoin is better suited for long-term monetary and geopolitical uncertainties that unfold over years.
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