Market intelligence platform IntoTheBlock says the overall macro environment remains volatile despite on-chain data suggesting a crypto bear market bottom.
In a new article, a crypto analytics firm finds that the number of long-term holders of Bitcoin (BTC), or traders who have owned BTC for at least a year, surged in 2022, prompting the investor class to overthrow the King crypto. I pointed out that it has been known to buy. Create a bear market and support level.
“HODLers holding the bottom – long-term bitcoin holders have historically taken advantage of bear markets to buy bitcoin.
In 2022, the amount of Bitcoin owned by addresses holding for more than a year (“hodlers”) increased by 50% from 10 million BTC to 15 million BTC. This pattern has been observed in previous bear markets, with Hodler balances decreasing only after new highs are set. ”
The article also found that half of Bitcoin holders are currently submerged. This has been the case in the past few times when Bitcoin has found the bottom of a bear market.
“The previous bear market bottomed out when more than 50% of holders lost positions and was classified as ‘out of the money’ by IntoTheBlock.”
According to IntoTheBlock, stocks and cryptocurrencies, especially BTC, are starting to correlate again after their paths diverged with the collapse of popular crypto exchange FTX.
However, the company notes that while the current situation resembles past bear market conditions, it is difficult to pinpoint what is on Bitcoin’s horizon.
“Macro correlations are back – after paths diverged through the FTX crash, cryptocurrencies and equities are moving in tandem again. suggests a very strong statistical relationship between the two…
While previous bear market on-chain indicators have followed previous trough patterns, the growing relevance of these macro factors has led us to question whether recent price action is the start of a bull market, or just a bull trap. There is still uncertainty about whether ”
Bitcoin is trading at $22,624 at the time of writing, up about 7% over the past 24 hours.
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