A crypto analyst says inaccurate narratives nonetheless flow into within the cryptocurrency market, primarily based mostly on skewed data somewhat than onchain information to again it up.
“Watch out for misinformation. Regardless of the info, deceptive narratives persist,” CryptoQuant contributor “Onchained,” stated in a March 22 market report.
“Such claims usually lack onchain validation and are pushed by sensationalist market sentiment somewhat than goal evaluation,” the analyst stated, including:
“Belief information, not noise, confirm sources and cross-check onchain metrics.”
Onchained pointed to the latest actions of Bitcoin (BTC) long-term holders (LTH) — these holding for over 155 days — for instance of false narratives clashing with actual information.
The analyst identified that whereas some narratives declare Bitcoin long-term holders are “capitulating,” the info reveals they’re remaining constant. “The info leaves no room for hypothesis,” Onchained stated.
The Inactive Provide Shift Index (ISSI) — which measures the diploma to which long-dormant Bitcoin provide is shifting — “reveals no significant LTH promoting strain, reinforcing a story of structural demand outpacing provide,” Onchained stated.
Narratives are all the time being challenged
Crypto analytics platform Glassnode not too long ago made the same remark based mostly on information, saying, “Lengthy-Time period Holder exercise stays largely subdued, with a notable decline of their sell-side strain.”
Crypto market narratives are always altering and being challenged.
One long-standing crypto narrative beneath debate is the relevance of the 4-year cycle principle, which means that Bitcoin’s value follows a predictable sample tied to its halving occasion each 4 years.
Supply: Tomas Greif
MN Buying and selling Capital founder Michael van de Poppe stated in a March 22 X submit, “I assume that we will erase your complete 4-year cycle principle and that we’re in an extended cycle for Altcoins.”
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Echoing the same sentiment, Bitwise Make investments chief funding officer Matt Hougan not too long ago stated that “the normal four-year cycle is over in crypto” because of the latest change within the US authorities’s stance.
“Crypto has moved in four-year cycles since its earliest days. However the change in DC introduces a brand new wave that can play out over a decade,” Hougan stated.
Alongside this, some analysts are even debating whether or not your complete Bitcoin bull market is over.
CryptoQuant founder and CEO Ki Younger Ju stated in a March 17 X submit, “Bitcoin bull cycle is over, anticipating 6-12 months of bearish or sideways value motion.”
Ju stated all Bitcoin onchain metrics point out a bear market. “With contemporary liquidity drying up, new whales are promoting Bitcoin at decrease costs,” Ju stated.
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