It has been revealed by Glassnode – a blockchain data analytics platform that following the collapse of FTX, there has been an “abrupt rotation of capital starting,” In addition to that, coins are now been transferred from long-term holders towards a set of buyers.
According to the statement, this change in hodl patterns has occurred in the past during previous cycles and could be an “inflection point, that indicates a change of the tides.“
The price of bitcoin has shaken off losses induced by the fake Interpol news this week with Binance also being targeted by the CFTC. However, for the time being, the market is still in consolidation.
On the 3rd of April 3, an RHODL metric was introduced by Glassnode this metric is used to compare the wealth held by the youngest Short-Term Holders (1d-3m) to single-cycle Long-Term Holders (6m-2y).
It was explained that the ratio aims to gauge the rotation between distribution points and extreme hodling.
Based on the current structure, which is in steep decline, it suggests that BTC is been transferred from long-term holders to short-term holders, this pattern has been on the rise following the collapse of FTX.
Also, another metric – the Market Value to Realized Value (MVRV) ratio was analyzed. This metric which is currently at 1.4 is used to measure an aggregate value, the unrealized profit multiple that is held within the supply of a coin. And according to a Glassnode, “this aligns more closely with a recovery phase.“
In addition to this, suggesting that the markets are in a transitional recovery phase is the Accumulation Trend Score.
The net flow of coins to and from wallets with little to no history of spending was measured by an Illiquid Supply Net Position Change metric. The results show an increase of 36,600 BTC per month, which indicates an increase in confidence in the asset.
Furthermore, the fear and greed index of Bitcoin has slipped into ‘greed,’ which suggests that a correction might be lurking around the corner.
In the past month, BTC has moved up by 28%, however, it is still down by 58.5% from its all-time high of $69,000 that was set in November 2021.
Featured Image Source: Crypto Slate
