Weirdest Bear Market in History – High Conviction for BTC and ETH

The strangest bear market in history is unfolding right before your eyes. The death spiral and the Chapter 11 bankruptcy that caused it seemed to come out of nowhere, but most people seemed prepared for it.

In any case, all coins are red. Fear, uncertainty and doubt should permeate the market. This is not the case for the two most popular cryptocurrencies. Although the conditions are different in each case, both markets are showing strong signals of confidence. It really is the strangest bear market in history.

Bitcoin and Ethereum long-term investors seem to be smiling in the face of a bear market. In the latest issue of The Wolf Den, the authors make use of the following data: glass node and Intotheblock show how this is true.

bear vs.Bitcoin

“On-chain evidence from Glassnode suggests no significant reduction in long-term believer convictions,” the newsletter states.

The Wolf Den looks at the “dormant index” to demonstrate this. The figure “records the average age of all Bitcoins in motion calculated by mining date.” The average age of coins in circulation gauges the mood of long-term holders. One approach. ”

As the astute reader may have guessed, the coins “on the market” are fairly young. In fact, their age is “lowest in years”. “Dormancy values ​​are really low.” This is similar to previous bear markets where dormancy levels were low. Glassnode’s analysis is cited in the newsletter.

“The drop in the longevity metric shows that older coins are standing still, and that the drop in price has had little psychological impact on this cohort’s beliefs, so it’s actually a long-term trend. It’s a good sign for

So when you look at the big picture, everything seems to be in place. Good habits to have in a bad market.

ETH Merge Is Coming

Wolf Den uses data from IntoTheBlock for this part. Before proceeding further, the author defined the sequence of events that make up the legendary “merge”. First and foremost, on September 6th, “Bellatrix upgrade on the Beacon chain”. Then, from September 10th to September 20th, “the official transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) will take place.” The Ethereum Foundation expects the merger to take place on his September 15th.

The Wolf Den examined “netflows to centralized exchanges” to assess the state of the Ethereum network in this bad market. Overall, more ETH is leaving than entering the exchange, which is a plus. This usually indicates that people are not looking to sell their belongings. But with mergers approaching and a bear market in full swing, it could have other implications.

On the one hand, it may be that “users are bullish on the merger because they believe it will be successful and they are stockpiling ETH for potential price action.” On the one hand, they may be anticipating a Proof-Of-Work hard fork of ETH. If this happens, “all he ETH held in the wallet can claim ETHW in a 1:1 ratio. There is a possibility that

This is another interesting aspect of the current bear market. “Recently, the average inflow transaction size has been larger than the outflow transaction size.” I’m here. It’s a stronger indicator. However, such large inflow deals may indicate something worthwhile. “Large traders and institutional investors are more skeptical about the success of the merger.”

In any case, Bitcoin and Ethereum long-term holders remain strong despite the bear market conditions. for quite different reasons.

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