A crypto analyst says inaccurate narratives nonetheless flow into within the cryptocurrency market, primarily based mostly on skewed data reasonably 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 reasonably 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 exhibits they’re remaining constant. “The information 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 — “exhibits no significant LTH promoting stress, reinforcing a story of structural demand outpacing provide,” Onchained stated.
Narratives are all the time being challenged
Crypto analytics platform Glassnode just lately made an analogous commentary based mostly on information, saying, “Lengthy-Time period Holder exercise stays largely subdued, with a notable decline of their sell-side stress.”
Crypto market narratives are continually altering and being challenged.
One long-standing crypto narrative beneath debate is the relevance of the 4-year cycle concept, 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 are able to erase the whole 4-year cycle concept and that we’re in an extended cycle for Altcoins.”
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Echoing an analogous sentiment, Bitwise Make investments chief funding officer Matt Hougan just lately stated that “the standard four-year cycle is over in crypto” as a result of 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 may play out over a decade,” Hougan stated.
Alongside this, some analysts are even debating whether or not the whole 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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