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How bad is the current state of crypto? On-chain analyst explains

How bad is the current state of crypto? On-chain analyst explains

Despite the widespread loss of confidence in cryptocurrencies following the FTX collapse, Bitcoin’s on-chain data is giving investors hope. Despite the market downturn and overall negative sentiment in the industry following the FTX collapse, on-chain data remains bullish as Bitcoin-BTC tickers dip $16,519. As network analyst Will Clemente pointed out, look at the positions of long-term holders that hit an all-time high even though their profitability was at an all-time low. “Long-term holders are buying heavily in the bear market. They set the floor, and then these long-term holders distribute their holdings to new entrants in the bull market.”  

Another notable positive trend after the FTX crash, according to Clemente, is that the average cryptocurrency user is increasingly moving away from exchanges and into the custodianship of their coins. According to Clemente’s analysis, this is reflected in the increased capital outflow from exchanges to self-custody wallets and the increasing amount of offers held by companies between 0.1 and 1 BTC. “By combining these two metrics, you get this picture of coins coming out from exchanges in these depository wallets for the average retailer. I find that very positive,” he said.

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