Despite the market downturn and widespread negative sentiment in the industry in the wake of the FTX crash, the on-chain data still shows reasons to be bullish on Bitcoin.
As noted by on-chain analyst Will Clemente, it suffices to look at long-term holder positions, which are at an all-time high despite their profitability at an all-time low.
Long-term holders are buying heavily in a bear market. They lay the groundwork, […] and then these long-term owners distribute their holdings to new market participants in the bull market,” he told Cointelegraph in an exclusive interview.
Another positive trend worth noting after the collapse of FTX, in Clementi’s opinion, is that the average crypto user is increasingly moving away from exchanges and taking self-guardianship of their coins.
According to Clemente’s analysis, this can be seen in the increased flow of capital from exchanges into self-custodial wallets and also in the increased amount of supply held by entities holding between 0.1 and 1 BTC.
“By combining those two metrics, you get this picture of the coins that are being exchanged in these custodial wallets for the average daily hash. And so, I think that is very positive,” he said.
For more on the bright side in the aftermath of the FTX meltdown, check out the full interview, and don’t forget to subscribe!