A crypto analyst says inaccurate narratives nonetheless flow into within the cryptocurrency market, primarily primarily based on skewed data slightly than onchain information to again it up.
“Watch out for misinformation. Regardless of the info, deceptive narratives persist,” CryptoQuant contributor “Onchained,” said in a March 22 market report.
“Such claims typically lack onchain validation and are driven by sensationalist market sentiment slightly than goal evaluation,” the analyst mentioned, including:
“Belief information, not noise, confirm sources and cross-check onchain metrics.”
Onchained pointed to the current actions of Bitcoin (BTC) long-term holders (LTH) — these holding for over 155 days — for instance of false narratives clashing with actual information.
The analyst identified that whereas some narratives declare Bitcoin long-term holders are “capitulating,” the info reveals they’re remaining constant. “The information leaves no room for hypothesis,” Onchained mentioned.
The Inactive Provide Shift Index (ISSI) — which measures the diploma to which long-dormant Bitcoin provide is shifting — “reveals no significant LTH promoting strain, reinforcing a story of structural demand outpacing provide,” Onchained mentioned.
Narratives are all the time being challenged
Crypto analytics platform Glassnode recently made a similar observation primarily based on information, saying, “Lengthy-Time period Holder exercise stays largely subdued, with a notable decline of their sell-side strain.”
Crypto market narratives are continuously altering and being challenged.
One long-standing crypto narrative underneath debate is the relevance of the 4-year cycle idea, which means that Bitcoin’s value follows a predictable sample tied to its halving occasion each 4 years.
Supply: Tomas Greif
MN Buying and selling Capital founder Michael van de Poppe said in a March 22 X put up, “I assume that we are able to erase the whole 4-year cycle idea and that we’re in an extended cycle for Altcoins.”
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Echoing an identical sentiment, Bitwise Make investments chief funding officer Matt Hougan lately mentioned that “the normal four-year cycle is over in crypto” as a result of current change within the US authorities’s stance.
“Crypto has moved in four-year cycles since its earliest days. However the change in DC introduces a brand new wave that may play out over a decade,” Hougan mentioned.
Alongside this, some analysts are even debating whether or not the whole Bitcoin bull market is over.
CryptoQuant founder and CEO Ki Younger Ju said in a March 17 X put up, “Bitcoin bull cycle is over, anticipating 6-12 months of bearish or sideways value motion.”
Ju mentioned all Bitcoin onchain metrics point out a bear market. “With recent liquidity drying up, new whales are promoting Bitcoin at decrease costs,” Ju mentioned.
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