Despite the widespread loss of confidence in crypto following the FTX crash, Bitcoin’s on-chain data gives investors hope.
Despite the market slowdown and widespread negative industry sentiment in the wake of the FTX collapse, on-chain data still shows reasons to be bullish on Bitcoin.
BTC
Tickers down
$22,910
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As On-Chain analyst Will Clemente points out, one only has to look at the positions of long-term holders, whose profitability is at an all-time low, but has reached an all-time high.
“Long-term owners tend to buy a lot in bear markets. They set the floor, […] and then those long-term owners distribute their holdings to the new entrants in the bull market,” he told Cointelegraph in an exclusive interview.
Another positive trend to note after the FTX crash, according to Clemente, is that the average crypto user is increasingly moving away from exchanges and taking up self-storage of their own coins.
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According to Clemente’s analysis, this can be seen in the increased flow of capital from exchanges to proprietary wallets and the increased amount of supply held by institutions between 0.1 and 1 BTC.
“By combining these two metrics, you get a picture of how many coins are being transferred into these custodial wallets for the average everyday retail person. So I think it’s very positive,” he said.
For more on the silver lining after the FTX crash, check out the full interview and don’t forget to subscribe!
