$BTC has held Defensive for two weeks, 30/100 on the Glassnode Market Compass.

Macro did the lifting, +24 on the month. Valuation stays at the cycle's discounted end, 16/100.

Cheap and improving. The missing leg is flows, light at 30.

Read it daily:

Strong hands are buying $BTC.

Bottoms are formed when profit taking slows and conviction buyers step in. This setup looks similar to what we saw during 2022.

The largest increase in BTC held by conviction buyers occurred when BTC dropped to $60k in January.

Most public $BTC treasuries are underwater.

Price is below their aggregate cost basis, and the share of companies sitting at a loss has climbed back toward around 80%

$500m worth of shorts were just liquidated within minutes.

As BTC spiked to over $69k, open interest dropped due to positions being force-closed.

It looks like the market was predominantly short for this move up.

Elevated yields keep BTC anchored near cycle lows while gold and oil rally. Price sits below two key cost bases in a shallow capitulation. Perpetual demand improves but US spot lags and volatility compresses. The bottoming process is underway.

https://x.com/i/article/2090109283220299776

$HYPE and $ETH are leading the major crypto assets during today’s rally.

Despite many coins showing double digit gains, these two assets are outpacing all other majors today.

The last daily $BTC close this large was in February, and that was just the rebound from the -14% day before it.

This one had no crash to bounce off. Against its own 30d volatility it was a 5.8 sigma move – the largest to the upside since October 2023.

@blocks and @Tesla are the top 2 major companies still in profit on their Bitcoin treasuries.

Nearly every other company on the list is now below or at its cost basis.

Also worth a mention is Bitcoin Group SE, a close third.

https://twitter.com/glassnode/status/2090035547364528559

Our liquidation heatmaps showed a massive short liquidation build-up before $BTC's move up yesterday.

For anyone using our hyperliquid heatmaps, the asymmetrical weakness was obvious up to 10 days before the actual move.

https://twitter.com/glassnode/status/2090110942789210113

High conviction buyers have been accumulating $BTC since January.

We saw similar behavior in 2022.

This cycle, the share of supply that was bought by this cohort is even larger than last cycle.

https://twitter.com/glassnode/status/2089739670242660761

$BTC has erased 3 months of underperformance against the S&P 500 in the last 72 hours.

As we showed several days ago, stretches of relative BTC underperformance are common.

However, when BTC does outperform, the excess gains tend to be significant.

https://twitter.com/glassnode/status/2089664677177700620

The dollar debasement narrative is back after the Treasury’s latest buyback announcement.

$BTC has led the move, up about 21% since the announcement, while gold also rose and equities barely moved.

Close to $1B has flowed into Bitcoin ETFs in the last 3 days.

This is the strongest 3-day inflow since $BTC was last trading above $80k.