Important indicator of investor sentiment plunges to levels dangerously close to ATL
As Bitcoin (BTC) dips below $21,000, on-chain analysts are reporting that some core activity metrics on its network are at new all-time highs.
Bitcoin (BTC) blockchain is calm amid bear market
According to the chart shared by Glassnode Alerts, an automated service by leading on-chain analytical firm Glassnode, the share of Bitcoins (BTC) that were active at least five years ago prints a new record.
According to the chart, almost 23.5% of Bitcoins have spent the past five years not leaving their wallets. It should be noted that this metric increases naturally except for the most overhyped phases of bullruns.
This echoes another analysis noticed by U.Today yesterday. An on-chain analyst posted that Bitcoin Dormancy Flow (a derivative of BTC wallet activity) is at its lowest since 2010.
As such, this is the first bear market that Bitcoin (BTC) supply has encountered with such insignificant on-chain activity.
Extreme Fear prints new record
Partially, this should be attributed to the fact that the trading and locking of Bitcoins (BTC) migrate to centralized services (CEXes) over time and, therefore, become invisible to on-chain instruments.
Meanwhile, Alternative’s Bitcoin (BTC) Fear and Greed Index ultimately failed to sustain the 8/100 level at which it bottomed in May and plunged another point.
As of June 15, 2022, this metric is at lows not seen since Q3, 2019. Should it plunge by just two more points, it is set to revisit the all-time low registered in October 2019.
