According to analytics firm IntoTheBlock, some on-chain metrics indicate that the crypto may be approaching the bottom of the bear market.
In the bear market of 2015, that number peaked at 62%, and in 2018 it reached 55%.
“Having majority ownership of an asset that has appreciated 25,000% since inception could be a sign of excessive bearish momentum. In 2015, it took six months for the majority of holders to return to profit, compared to three months in 2018.
Bear cycles appear to be getting shorter and with a smaller share of losing holders over time. This trend also favors the chances that a potential bottom is near.
Bitcoin is trading at $16,632 at the time of writing. The top-ranked crypto asset by market capitalization is down 1.92% in the past 24 hours.
Outumuro also notes that long-term investors have been buying BTC amid the crypto market’s price issues. The amount of Bitcoin held by addresses holding the crypto king for more than a 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 usually start selling to new investors soon after new all-time highs.”
Outumuro also points out that over $3 billion worth of Bitcoin and Ethereum (ETH) left centralized crypto exchanges this week. According to the on-chain analyst, digital assets stealing from crypto exchanges potentially suggests hoarding or distrust of centralized platforms.
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