Update: 20:31 06/12/2023From 25 Jul - 30 Jul, 2022
Bitcoin long-term investors are holding 80% of the total token supply in the market
Data from Glassnode indicates that 80% of Bitcoins circulating supply is in the hands of long-term holders (LTH). Defined as a user who has owned BTC for at least 6 months, LTH has often enthusiastically supported bottoms in each market cycle.
Those who are considered LTH often accumulate Bitcoin during downtrends. Until the uptrend wave returns, these LTHs perform the act of selling their accumulated Bitcoin for a profit.
The cryptocurrency market is in a recession because of the impact of macro factors. However, there are a few positive signals for investors to feel more secure when the market is creating a bottom similar to the previous market cycles. And the waves of recovery are back, though still rather weak.
3 signs Bitcoin price is forming a potential ‘macro bottom’
Bitcoin (BTC) could be in the process of bottoming after gaining 25%, based on several market signals.
The first sign of Bitcoins macro bottom comes from its weekly relative strength index (RSI).
Another sign of a potential Bitcoin macro bottom comes from its net unrealized profit and loss (NUPL) indicator.
The third sign of Bitcoin forming a macro bottom comes from another on-chain indicator called the Puell Multiple.
The battle between crypto bulls and bears shows hope for the future
Bitcoin traded below its mining cost basis in June, DeFi experienced a 33% decline in TVL, and mid-month weekly BTC options peaked to their highest on record.
Leading up to June, there had been a strong bearish sentiment in the market. One indicator of bearish and bullish sentiment is the volatility skew of a market. On June 18, the Bitcoin options 25-delta skew peaked at 36%, the highest ever on record. Since then, some optimism has returned, sending the skew down to 17%. This signals a strong belief that the crypto market will rebound over the next few months.
Premiums on long calls on Bitcoin and Ether indicate that traders are optimistic about the end of the year. However, solvency issues and the risk of contagion are still present in the market and the minds of investors and regulators.
Cryptocurrency Markets Recover Strongly After Fed Raises Rates
Since the beginning of 2022, the Fed has raised interest rates 4 times in a row in March, June, and July, with adjustments of 0.25%, 0.5%, and 0.75 respectively. % and 0.75%. The Feds goal will be to bring interest rates to the range of 3%-3.5% by the end of this year through the remaining adjustments in September, November, and December.
As soon as the news of a 0.75% increase was confirmed by the Fed, Bitcoin (BTC) even regained its momentum from the $21,900 region and even surged to the $23,100 mark. After that, the worlds largest cryptocurrency is stabilizing around the $22,700-23,000 zone. Other major cryptocurrencies in the top 20 right now are also returning 6-20% gains. The market capitalization is stabilizing around the $1.045 billion mark.
FTC loses Meta lawsuit for "Metaverse monopoly"
The US Federal Trade Commission (FTC) has filed a lawsuit against Meta and CEO Mark Zuckerberg to prevent the social media giant from "owning the entire metaverse".
In a statement today, the lawsuit states that Meta is "a potential player in the virtual reality sports app market" with sufficient resources to develop its own app.
Meta previously revealed plans to acquire Within for $400 million in October last year. Unless the court intervenes, the deal is likely to go ahead as planned on August 1.
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