The appetite for speculative investments in the cryptocurrency market is diminishing, as investors shift towards safer digital asset opportunities in light of recent memecoin scams and ongoing macroeconomic instability.
Bitcoin’s “hot supply” metric, which tracks BTC transactions that are one week old or younger, has plummeted over 50%, dropping from 5.9% at the end of November to a mere 2.3% as of March 20. This indicates a significant change in investor behavior, signaling a desire for safer investment strategies amid recent market turbulence, according to insights from an analyst at a major research firm.
The declining metric suggests that investors are prioritizing security in their decisions during these unpredictable times. “In moments of uncertainty, investors not only seek safety but also strive for well-considered choices. Often, that rational decision points to Bitcoin,” the analyst noted.
This shift is not merely a reaction to fear; it also encapsulates a more practical investment approach, the analyst explained.
The ratio of stablecoin supply to Bitcoin, known as the stablecoin supply ratio (SSR), further confirms that investors are hesitant to establish significant new positions at this time.
The SSR reached an over four-month low of 8, a level not seen since early November 2024, when Bitcoin was trading at $67,000 prior to a rally that propelled it to an all-time high of $109,000.
SSR values beneath 10 are generally regarded as low, indicating a scarcity of stablecoin buying power among investors when compared to Bitcoin’s overall market capitalization.
This cautious stance among crypto investors mirrors sentiments among traditional market players, according to a market analyst within the real-world asset tokenization space.
“The trends in the U.S. stock market often influence the sentiment for riskier assets like cryptocurrency. Currently, even while the macro environment remains uncertain, corrections like these are typical and emphasize where real value exists as the market develops and gains knowledge,” the analyst stated.
Despite this increasing investor caution, Bitcoin has outperformed all major global asset classes since the election of the former U.S. President, including stocks, equities, U.S. treasuries, real estate, and precious metals.
Speculative interest is “declining” among crypto investors
The cooling in Bitcoin’s hot supply metric reflects a waning speculative interest, as noted by a technical analyst who recently commented on social media.
“The fading speculative appetite is indicative of a cooling market,” the analyst remarked, adding that this trend results in fewer new coins circulating, lower liquidity, and diminished market participation.
Despite the prevailing hesitance regarding risk, analysts retain a positive outlook on Bitcoin’s price trajectory for the remainder of 2025, with forecasts ranging from $160,000 to above $180,000.
Magazine: ETH may bottom at $1.6K, SEC delays multiple crypto ETFs, and more: Hodler’s Digest, March 9–15