How bad is the current state of crypto? On-chain analyst explains

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Despite the mar­ket down­turn and the wide­spread neg­a­tive sen­ti­ment in the indus­try in the wake of the FTX col­lapse, on-chain data still show rea­sons to be bull­ish on Bitcoin. 

As point­ed out by on-chain ana­lyst Will Clemente, it’s enough to look at the long-term holders’s Bit­coin posi­tions: they reached an all-time high despite their prof­itabil­i­ty being at an all-time low. 

“Long-term hold­ers buy heav­i­ly into the bear mar­ket. They set the floor[…] and then those long-term hold­ers dis­trib­ute their hold­ings to new mar­ket par­tic­i­pants in the bull mar­ket”, he told Coin­tele­graph in an exclu­sive interview. 

Anoth­er pos­i­tive trend worth notic­ing after the FTX col­lapse, in Clemente’s opin­ion, is that the aver­age cryp­to users are increas­ing­ly turn­ing away from exchanges and tak­ing self-cus­tody of their own coins. 

Accord­ing to Clemente’s analy­sis, that is shown by the increas­ing out­flow of cap­i­tal from exchanges to self-cus­tody wal­lets and also by an increas­ing amount of sup­ply held by enti­ties hold­ing between 0.1 and 1 Bitcoin. 

“By com­bin­ing those two met­rics, you get this pic­ture of coins com­ing off exchanges into these cus­to­di­al wal­lets for the aver­age every­day retail per­son. And so I think that’s very pos­i­tive”, he said. 

To find out more about the sil­ver lin­ing in the after­math of the FTX col­lapse, check out the full inter­view and don’t for­get to subscribe! 

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