According to On-Chain Metrics, the Cryptocurrency Bear Market May Be Ending Soon
According to IntoTheBlock, a cryptocurrency analytics firm, certain on-chain metrics suggest the crypto market may be nearing the bottom of the bear market.
That percentage peaked at 62% during the 2015 bear market, reaching 55% in 2018.
According to Outumuro, “Having the majority of holders of an asset that has appreciated 25,000% since inception could be a sign of bearish momentum getting excessive. In 2015 it took six months for the majority of holders to be back into profits, compared to three months in 2018. Bear cycles appear to be getting shorter, with a smaller share of holders losing over time. This trend also favors the chances of a potential bottom being near.”
At the time of writing, the price of one bitcoin is $16,632. The market cap leader in cryptocurrencies has seen a decline of 1.92% over the last day.
Outumuro also points out that amid the price problems in the cryptocurrency market, long-term investors have been purchasing BTC. By addresses that have held the king cryptocurrency for more than a year, there are now 2.7 million more Bitcoins in circulation.
The analyst explains, “Demand from long-term investors slowly creates a floor for Bitcoin in bear markets, and they typically begin to sell to new investors shortly after new all-time highs.”
Outumuro also points out that centralized cryptocurrency exchanges have lost more than $3 billion worth of Bitcoin and Ethereum (ETH) this week. The on-chain analyst believes that digital assets leaving cryptocurrency exchanges may indicate either accumulation or mistrust of centralized platforms.
Disclaimer: Nothing on this site should be construed as a financial investment recommendation. It’s important to understand that investing is a high-risk activity. Investments expose money to potential loss.