Bitcoin On-Chain Metrics Show Accumulation Whilst Market Remains Fearful

GB Market Commentary 25/11/2021

by Marcus Sotiriou

Bitcoin’s on-chain metrics continue to show accumulation. The Bitcoin number of non-zero addresses (shown below) proceeds to climb and has reached a new all time high. Furthermore, on-chain analyst Will Clemente notes that the supply shock ratio has been increasing whilst the price has been declining the past few weeks. Both of these indicators suggest that the bull market has a long way to go still, and that Bitcoin may reach much higher prices in the coming months. Kucoin has also reported that 60% of their trading volume in November was from spot trading. This is confluent with the idea that the market is in a healthy state at the moment, as the majority of volume on Kucoin is not related to leverage.

EY, who are one of the biggest consulting and auditing firms in the world, have carried out a survey suggesting that 1 in 4 hedge funds plan to increase crypto exposure within the next year. These findings were based on conversations involving 210 managers and 54 investors. This research is compelling, especially when considering the fact that hedge funds globally manage around $4 trillion of assets. I think at some point this decade all hedge funds will be looking at crypto as an alternative investment, as the industry matures.