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

Despite the market downturn and the widespread unfavorable sentiment in the trade in the wake of the FTX collapse, on-chain information nonetheless present causes to be bullish on Bitcoin. 

As identified by on-chain analyst Will Clemente, it’s sufficient to take a look at the long-term holders’s Bitcoin positions: they reached an all-time excessive regardless of their profitability being at an all-time low.

“Long-term holders purchase closely into the bear market. They set the flooring[…] after which these long-term holders distribute their holdings to new market individuals in the bull market”, he advised Cointelegraph in an unique interview.

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

According to Clemente’s evaluation, that is proven by the rising outflow of capital from exchanges to self-custody wallets and in addition by an rising quantity of provide held by entities holding between 0.1 and 1 Bitcoin. 

“By combining these two metrics, you get this image of cash coming off exchanges into these custodial wallets for the common on a regular basis retail particular person. And so I feel that is very optimistic”, 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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