Bitcoin Shows Early Signs of Accumulation Amid Crypto Market Struggles

The crypto market's Q2 struggles may be coming to an end as Bitcoin (BTC) shows early signs of accumulation, according to Glassnode in a recent report. The global crypto market cap fell 12% during this period, with stablecoin supply reaching record highs as investors rotated into defensive assets.

Bitcoin's correlation with stocks declined to 0.12, while its correlation with gold increased to 0.57 over the same period. On-chain data indicates a shift from speculative activity to accumulation, with the MVRV ratio approaching 1 and the share of supply held in profit falling below its lower statistical band.

However, investor sentiment remains weak, with entity-adjusted NUPL falling into the fear zone by the end of Q2. Glassnode warns that risks remain, including renewed ETF outflows and a break of key support.