Bitcoin is crashing (again) as we speak, so let's take a quick look at the latest data, with a full weekly report coming tomorrow!
Seems like weak hands are being shaken out, with Bitcoin's exchange inflow picking up as we speak:
At the same time, Bitcoin's Network Profit/Loss suggests the active Bitcoins today are - on average - being moved at a loss compared to the time acquired, suggesting panic selling may be creeping in among some short-term holders:
On another interesting note, Bitcoin's 30-day MVRV ratio is now the lowest it's been since June, coming very close to a historical support level of -15%:
Full breakdown on the whales, social crowd and other key stakeholders coming in a weekly Pro report tomorrow. Stay safe out there!
I recently did a quick market health checkup on Ethereum, which you can check out here. Now, as Bitcoin continues to bore people to tears as it ranges between $31k and $36k for the fourth straight week, let's see what our key metrics are saying:
% Supply on Exchanges
Bitcoin's supply on exchanges continues declining, which diminishes the risk of another major selloff.
Weighted Social Sentiment (Twitter)
The crowd sentiment toward Bitcoin, which means buying against the crowd can be profitable.
Average 30-day returns (a useful combo timeframe for both short and mid-term trading) are -4.32%, which essentially means average traders are about even.
Bitmex Funding Rate
The perpetual contract funding rate has come back up to even after the excess shorting that had been frequent.
Bitcoin's circulation vs. its market cap has been... awful so far in July. Be careful with a 5th straight month looking like it will end in the red.
- IMF, Salvador, Bitcoin - https://cointelegraph.com/news/imf-plans-to-meet-with-el-salvador-s-president-potentially-discussing-move-to-adopt-bitcoin
- Warren - https://markets.businessinsider.com/currencies/news/sen-warren-crypto-calls-for-crackdown-on-environmentally-wasteful-cryptocurrencies-2021-6-1030512227
- Salvador, BTC, country, tender, legal, countries - https://www.washingtonpost.com/business/energy/el-salvadors-bitcoin-bombshell--what-does-it-mean/2021/06/09/11d9eedc-c983-11eb-8708-64991f2acf28_story.html
- Volcano, Bitcoin - https://www.rt.com/news/526147-salvador-bitcoin-currency-volcano/
- Warren - https://www.reuters.com/technology/warren-us-government-needs-confront-crypto-threats-head-on-2021-06-09/