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On-chain metrics suggest that despite recent price issues, crypto is nearing the bottom of the bear market: IntoTheBlock

According to analytics firm IntoTheBlock, certain on-chain metrics suggest that crypto may be near the bottom of the bear market.

Lucas Outumuro, head of research at IntoTheBlock, notes in a new analysis that more than half of Bitcoin (BTC) holders are losing money on their positions, a level not seen since March 2020.

In the 2015 bear market, that figure peaked at 62%, and in 2018 it reached 55%.

explains Outumuro,

“Having majority ownership of an asset that is up 25,000% since inception could be a sign that bearish momentum is becoming excessive. In 2015, it took six months for the majority of holders to return to profitability, compared to three months in 2018.

Bear cycles appear to be getting shorter and a smaller proportion of holders are losing over time. This trend also favors the likelihood that a potential bottom is close.”

Bitcoin is trading at $16,632 at the time of writing. The top-rated crypto asset by market cap is down 1.92% in the last 24 hours.

Outumuro also notes that long-term investors have been buying up BTC amid the crypto market’s price woes. The amount of Bitcoin held by addresses that have held the king crypto for more than a year has increased by 2.7 million BTC so far this year.

Explains the analyst

“Demand from long-term investors is slowly creating a bottom for Bitcoin in bear markets, and they usually start selling to new investors shortly after new all-time highs.”

Outumuro also highlights that over $3 billion worth of Bitcoin and Ethereum (ETH) left centralized crypto exchanges this week. According to the on-chain analyst, digital assets flying off crypto exchanges may indicate accumulation or distrust of centralized platforms.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any risky investments in bitcoin, cryptocurrency or digital assets. Please note that you transfer and trade at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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