Regardless of the market downturn and the widespread detrimental sentiment in the trade in the wake of the FTX collapse, on-chain knowledge 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.
“Lengthy-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 instructed Cointelegraph in an unique interview.
One other constructive development value noticing after the FTX collapse, in Clemente’s opinion, is that the common crypto person is more and more turning away from exchanges and taking self-custody of their very own cash.
In accordance with Clemente’s evaluation, that may be seen in the growing outflow of capital from exchanges to self-custody wallets and in addition in the growing quantity of provide held by entities holding between 0.1 and 1 BTC.
“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 individual. And so, I believe that’s very constructive,” he mentioned.
To seek out out extra about the silver lining in the aftermath of the FTX collapse, check out the full interview, and don’t neglect to subscribe!