Despite the market downturn and general negative sentiment in the sector following the FTX crash, on-chain data continues to show reason to be bullish on Bitcoin.
As on-chain analyst Will Clemente points out, just look at long-term holders’ Bitcoin positions: they have reached an all-time high despite their profitability being at an all-time low.
“Long-term holders buy a lot in the bear market. They set the floor […] and then those long-term holders distribute their holdings to new market entrants in the bull market,” he told Cointelegraph in an exclusive interview.
Another positive trend worth watching after the FTX collapse, in Clemente’s opinion, is that average cryptocurrency users are increasingly moving away from exchanges and taking self-custody of their own coins.
According to Clemente’s analysis, that is demonstrated by the increasing outflow of capital from exchanges to self-custody wallets and also by a growing amount of supply in the hands of entities holding between 0.1 and 1 Bitcoin.
“Combining these two metrics, you get this picture of coins going out of exchanges into these custodial wallets for the average person. And I think that’s very positive.”said.
To learn more about the silver lining of the FTX crash, check out the full interview and don’t forget to subscribe.
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