Bitfinex Alpha Report in this week’s edition, focused its analysis, based on on-chain data, on the Bitcoin cryptocurrency despite the fact that the crypto ecosystem is currently in turmoil due to the collapse of Silicon Valley Bank (SVB) and the decoupling with the dollar parity, momentary, of USD Coin (USDC).
Right now, within the Bitcoin market in addition and despite the fact that the net losses realized in BTC have increased, it is really due to new investors. Meanwhile, forks with a little more experience continue to be unaffected in any way.
The BTC net realized gain and loss indicator shows how the digital asset market is positioned in a context where realized net losses are large. However, this is not the time to suggest the start of the bullish leg, as instead the market is actually in the final leg of the downtrend.
In the same way, the difference between the increase in net realized losses and the peak obtained during the collapse of Luna and even the collapse of FTX is undeniable.
“This is a testament to the increased inherent strength of the market compared to 2022.” Bitfinex stated in its report.
Blockware Intelligence showed in its Coin Days Destroyed (CDD) chart that “the bottom could be near or have already arrivedexpressed Bitfinex Alpha. CDD takes care of showing the total number of coins that were moved in a day, multiplied by the number of days in which the coin was last moved.
According to the chart, Bitfinex Alpha detailed in its analysis that “Moments of widespread capitulation have historically been correlated with prominent increases in CDD, which are circled in the figure above.”
Analyzing the aforementioned with the increase in net realized losses addressed at the beginning of the article, It can be noted that the currencies with the greatest movement are currencies with little trajectory, which leads to HODLers being free of all kinds of worries.
For its part, The Block showed that while the 25% delta deviation with the 30 and 60 day expiration possibilities has also reached its lowest levels of the yeararound negative three (-3) and negative two (-2), respectively, the deviation from the 25% delta of the options to expiration between 90 and 180 days has not changed and both have remained close to zero.
This makes one think that perhaps investors in all this upheaval that the market is dealing with “crypto bank failures, increased scrutiny from US regulators and continued Fed tightening efforts” really have little opportunity to carry out a steep decline in Bitcoin from current levels.
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