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

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



Despite the market downturn and the widespread unfavourable sentiment in the business in the wake of the FTX collapse, on-chain information nonetheless present causes to be bullish on Bitcoin (BTC). 

As identified by on-chain analyst Will Clemente, it’s sufficient to have a look at the positions of long-term holders, which reached an all-time excessive regardless of 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 advised Cointelegraph in an unique interview.

Another optimistic development price noticing after the FTX collapse, in Clemente’s opinion, is that the common crypto consumer is more and more turning away from exchanges and taking self-custody of their very own cash. 

According to Clemente’s evaluation, that may be seen in the growing outflow of capital from exchanges to self-custody wallets and likewise in the growing quantity of provide held by entities holding between 0.1 and 1 BTC. 

“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 mentioned. 

To discover out extra about the silver lining in the aftermath of the FTX collapse, try the full interview, and don’t neglect to subscribe!



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