“Bitcoin Hodl Ratio Shows Cycle Shifting to Bull Market”
Blockchain data analytics platform Glassnode revealed that there was a sudden capital rotation that started with the collapse of FTX, adding that the coins were transferred from long-term holders to a new set of buyers. Glassnode stated that this change in hodl patterns has also been seen in previous cycles and may be a turning point, indicating that the tides are changing. Bitcoin price has erased losses caused by the CFTC’s targeting of Binance and this week’s fake Interpol news. However, the markets remain in consolidation for now.
“ICYMI: The current structure of the #Bitcoin RHODL ratio suggests a notably abrupt rotation of capital starting as FTX collapsed, with coins transferring from long-term holders, towards a new cohort of buyers. This sharp decline in the RHODL Ratio can be seen in prior cycles to be an inflection point, suggesting a changing of the tides.”
On April 3, Glassnode introduced a RHODL metric that compares the wealth held by single-cycle Long-Term Holders (6m-2y) with the youngest Short-Term Holders (1d-3m). Glassnode explained that the ratio is intended to measure excessive hodling and rotation between distribution points.
The current structure, which is in a steep decline, shows that BTC is moving from long-term holders to short-term holders, an accelerating pattern following the demise of FTX. In addition, the ratio of Market Value to Realized Value (MVRV) was also analyzed. This is used to measure the coefficient of total unrealized profits held within the coin supply. According to Glassnode, the metric is currently at 1.4, which is closer to recovery. The Accumulation Tendency Score also shows that the markets are in a temporary recovery phase.
The Idle Supply Net Position Change metric has been used to measure the net flow of coins to and from wallets with little or no spending history. This is up by 36,600 BTC per month, indicating increased confidence in the asset: This is in line with our previous observations on HODLers and provides additional evidence that confidence in market sentiment remains despite the background of regulatory pressure.
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