Certain on-chain metrics indicate crypto could be nearing the bottom of the bear market, according to the analytics firm IntoTheBlock.
In the 2015 bear market that number peaked at 62%, and in 2018, it hit 55%.
“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 and with a smaller share of holders losing over time. This trend also favors the chances of a potential bottom being near.”
Bitcoin is trading at $16,632 at time of writing. The top-ranked crypto asset by market cap is down 1.92% in the past 24 hours.
Outumuro also notes that long-term investors have been buying up BTC amid the crypto market’s price woes. The amount of Bitcoin held by addresses holding the king crypto for more than one year has increased by 2.7 million BTC so far this year.
Explains the analyst,
“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 highlights that over $3 billion worth of Bitcoin and Ethereum (ETH) have left centralized crypto exchanges this week. According to the on-chain analyst, digital assets flying off crypto exchanges potentially suggests accumulation or distrust of centralized platforms.
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