{"id":18435,"date":"2025-03-21T11:18:06","date_gmt":"2025-03-21T11:18:06","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=18435"},"modified":"2025-03-21T11:18:06","modified_gmt":"2025-03-21T11:18:06","slug":"bitcoin-speculative-appetite-declines-as-investors-seek-safety","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=18435","title":{"rendered":"Bitcoin speculative appetite declines as investors seek safety"},"content":{"rendered":"
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\"Bitcoin<\/p>\n

Speculative appetite is vanishing from the crypto markets, as investors are looking for safer digital asset investments following the recent wave of memecoin scams and macroeconomic uncertainty.<\/p>\n

Bitcoin\u2019s hot supply metric, which measures the Bitcoin (BTC<\/a>) aged one week or less, is down over 50%, from 5.9% at the end of November to just 2.3% on March 20, Glassnode<\/a> data shows.<\/p>\n

The metric\u2019s decline signals an investor shift to safer investment positioning amid the recent market volatility, according to Ryan Lee, chief analyst at Bitget Research.<\/p>\n

\"Bitcoin
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Bitcoin hot supply metric. Source: <\/em>Glassnode<\/em><\/a>\u00a0<\/em><\/p>\n<\/figcaption><\/figure>\n

Global trade tensions<\/a> and fluctuating market dynamics are making investors reconsider their strategies, the analyst told Cointelegraph, adding:<\/p>\n

\u201cDuring uncertain times, investors are not only seeking security but are also focused on rational decision-making. In many instances, that rational choice is represented by Bitcoin.\u201d<\/p><\/blockquote>\n

\u201cThis trend isn’t solely rooted in fear, it also reflects a more pragmatic approach to investing,\u201d explained Lee.<\/p>\n

Related: <\/strong><\/em>Bitcoin experiencing \u2018shakeout,\u2019 not end of 4-year cycle: Analysts<\/strong><\/em><\/a><\/p>\n

The stablecoin supply ratio (SSR), which measures the ratio between Bitcoin and stablecoin supply, also suggests that investors are still hesitant to take on significant new positions.<\/p>\n

\"Bitcoin
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BTC SSR ratio, 1-year chart. Source: <\/em>Glassnode<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

The SSR ratio stood at an over four-month low of 8, last seen at the beginning of November 2024, when Bitcoin was trading at $67,000, just before the post-election rally<\/a> took BTC to a new all-time high of $109,000.<\/p>\n

Historically, SSR values below 10 are considered low, indicating that there is relatively low stablecoin buying power among investors, compared to Bitcoin\u2019s market cap.<\/p>\n

The cautious crypto investor positioning aligns with the sentiment among traditional market participants, according to Enmanuel Cardozo, market analyst at Brickken real-world asset (RWA) tokenization platform.<\/p>\n

The market analyst told Cointelegraph:<\/p>\n

\u201cUS stock market trends often set the tone for risk-on assets like crypto, and right now, although the macro picture is still uncertain, these corrections are normal and just highlight where the real value lies as the market continues to mature and educate itself.\u201d<\/p><\/blockquote>\n

\"Bitcoin
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Asset performance post-Trump administration takeover. Source: <\/em>Thomas Fahrer<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Despite the growing investor caution, Bitcoin outperformed all major<\/a> global assets since US President Donald Trump\u2019s election, including the stock market, equities, US treasuries, real estate and precious metals.<\/p>\n

Related: <\/strong><\/em>Whale closes $516M 40x Bitcoin short, pockets $9.4M profit in 8 days<\/strong><\/em><\/a><\/p>\n

Speculative appetite is \u201cfading\u201d among crypto investors<\/h2>\n

The cooldown in Bitcoin\u2019s hot supply metric shows faltering speculative appetite, according to technical analyst Kyledoops, who wrote in a March 21 X post<\/a>:<\/p>\n

\u201cSpeculative appetite is fading, and the market is cooling off.\u201d<\/p><\/blockquote>\n

\u201cThis means fewer fresh coins in circulation, reduced liquidity, and lower market participation,\u201d added the analyst.<\/p>\n

Despite the current lack of risk appetite, analysts remain optimistic on Bitcoin\u2019s price trajectory for the rest of 2025, with price predictions ranging from $160,000<\/a> to above $180,000<\/a>.<\/p>\n