Tag: On-chain Metrics

Bitcoin Undervalued at $85K: On-Chain Metrics Signal Strong Accumulation

Fresh analysis from CryptoQuant suggests Bitcoin (BTC) may be significantly undervalued at current price levels, with multiple on-chain metrics pointing to sustained accumulation patterns and bullish market structure. This comprehensive analysis comes as technical patterns increasingly mirror the 2017 bull run that could target $93,000.

Exchange Reserves Hit 7-Year Low as Holders Accumulate

According to CryptoQuant analyst BorisVest, Bitcoin exchange reserves have plummeted to just 2.43 million BTC – marking a dramatic 28.5% decline from the 3.40 million BTC held on exchanges during the 2021 bull market peak. This significant reduction in available supply suggests strong accumulation behavior from long-term holders.

“The massive exodus of Bitcoin from exchanges represents the longest sustained period of accumulation we’ve seen in seven years,” notes BorisVest. “With supply continuously moving to cold storage, we’re seeing classic signs of supply shock formation.”

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Stablecoin Supply Ratio Suggests Strong Buying Power

The analysis highlights Bitcoin’s Stablecoin Supply Ratio (SSR) currently sitting at 14.3 – well below the 2021 peak of 34. This indicates substantial dry powder remains on the sidelines, ready to enter the market. This metric gains additional significance as recent projections suggest the stablecoin market could reach $2T by 2028.

USDT Dominance Shows Risk-On Shift

Adding to the bullish narrative, declining USDT dominance suggests investors are rotating out of stablecoins and into risk assets like Bitcoin. This shift in market positioning typically precedes significant upward price movements.

Technical Indicators Align with On-Chain Strength

The weekly RSI has broken its downtrend, while exchange net flows signal continued accumulation. These technical indicators, combined with strong on-chain metrics, paint a compelling picture for Bitcoin’s medium-term outlook.

FAQ Section

What does declining exchange reserves mean for Bitcoin?

Declining exchange reserves typically indicate that investors are moving Bitcoin to long-term storage, reducing available supply for trading and potentially creating upward price pressure.

How does the Stablecoin Supply Ratio affect Bitcoin’s price?

A lower SSR suggests there is significant stablecoin buying power relative to Bitcoin’s market cap, indicating potential for price appreciation if this capital enters the market.

What’s the significance of the current $85,550 price level?

This price level represents a critical juncture where on-chain metrics suggest undervaluation, despite being near all-time highs.

April 16, 2025
XRP Dominates Retail Trading as Daily Active Addresses Surge 490%
Glassnode’s latest on-chain analysis reveals a significant shift in retail investor behavior, with XRP emerging as the dominant choice for retail traders in the current market cycle. The report, titled ‘Rippling Away,’ shows XRP’s remarkable growth in user activity despite Bitcoin’s consolidation between $76,000-$87,000.

In a striking comparison, XRP’s daily active addresses have surged by 490% from the 2022 cycle low, while Bitcoin saw just a 10% increase. This dramatic divergence highlights unprecedented retail interest in XRP, with its Realized Cap nearly doubling from $30.1 billion to $64.2 billion between December 2024 and early 2025.

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However, this retail enthusiasm comes with warning signs. As noted in recent analysis of XRP market dynamics, the current structure shows increasing fragility. Glassnode’s data indicates a concerning trend in the Realized Loss/Profit Ratio, which has steadily declined since January 2025.

Key Market Indicators
- Daily Active Addresses: +490% increase from 2022 cycle low
- Realized Cap Growth: $30.1B to $64.2B (Dec 2024 – Early 2025)
- New Capital Inflow: Approximately $30B in last 6 months
- Current Trading Price: $2.00
Risk Factors and Market Outlook

The report highlights several concerning factors that could impact XRP’s price stability:
- Top-heavy cost basis structure
- Declining profitability metrics
- Waning retail confidence since February 2025
- High concentration of new investors vulnerable to volatility
Frequently Asked Questions

What’s driving XRP’s retail popularity?

The surge in retail interest can be attributed to XRP’s strong performance and increased accessibility through major exchanges.

Is the current XRP rally sustainable?

Glassnode’s data suggests caution, with multiple indicators pointing to potential market saturation and declining momentum.

How does XRP’s performance compare to Bitcoin?

While XRP shows stronger retail participation metrics, Bitcoin maintains more stable long-term holder behavior and institutional interest.

At press time, XRP trades at $2.00, with market participants closely monitoring these evolving trends for signs of directional change.
April 4, 2025
Bitcoin Exchange Outflows Signal Major Rally: On-Chain Data Analysis
Recent on-chain data suggests Bitcoin (BTC) could be preparing for a significant price surge, as exchange outflows reach levels historically associated with major rallies. According to the latest CryptoQuant analysis, Bitcoin has maintained negative exchange net flows since February 6, 2025 – a key indicator that typically precedes substantial price appreciation.

Understanding the Exchange Flow Dynamics

The crypto market has experienced heightened volatility in the past 24 hours, with liquidations surpassing $360 million. Despite this turbulence, market volatility indicators suggest a major directional move is imminent, with on-chain metrics painting a decidedly bullish picture.

CryptoQuant analyst ibrahimcosar’s research highlights a crucial trend: consistent negative exchange net flows since early February. This metric carries significant weight in predicting future price movements.

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Key On-Chain Metrics Supporting the Bullish Case

When investors withdraw large quantities of BTC from exchanges, it typically indicates strong holding sentiment and anticipation of price appreciation. These withdrawals to cold storage suggest a long-term investment strategy, reducing available supply on exchanges.

The current data shows:
- Sustained negative exchange net flows since February 6
- Accelerating withdrawal rates in March
- Declining exchange reserves reaching multi-year lows
Technical and Macro Factors Align

Beyond exchange flows, multiple indicators support the bullish outlook. The Relative Strength Index (RSI) has broken its multi-month downtrend, while key resistance levels near $88,000 are being tested.

Frequently Asked Questions

What does negative exchange flow mean for Bitcoin price?

Negative exchange flow indicates more Bitcoin is being withdrawn than deposited, typically signaling strong holder conviction and reduced selling pressure.

How reliable are exchange flow indicators?

Historical data shows exchange flow metrics have accurately predicted major price movements with approximately 80% accuracy when combined with other technical indicators.

What price targets are analysts suggesting?

Based on current metrics and historical patterns, analysts suggest potential targets between $95,000 and $112,000 in the near term.

At press time, Bitcoin trades at $85,071, showing a 2.1% decline over 24 hours, though broader market indicators suggest this could be a temporary pullback before the next leg up.
March 28, 2025
Bitcoin Activity Hits 6-Month Low: Bear Market Signal?
Market Analysis: Bitcoin Transaction Volume Plummets

In a concerning development for cryptocurrency markets, Bitcoin’s on-chain transaction count has dropped to levels not seen since October 2023, raising questions about potential bearish implications for the leading digital asset. This significant decline in network activity comes as Bitcoin continues to consolidate around the $83,000 level, with traders closely monitoring on-chain metrics for directional cues.

Key On-Chain Metrics Show Declining Interest

According to data from IntoTheBlock, the daily number of Bitcoin transactions has experienced a substantial decrease, suggesting a potential cooling of investor interest. This metric is particularly significant as it serves as a key indicator of network health and market participation.

Notable findings include:
- Transaction count has reached a 6-month low
- Previous low in October 2023 preceded a major rally
- Current decline shows more prolonged weakness compared to previous dips
Market Implications and Technical Analysis

While the drop in transaction volume typically signals bearish sentiment, historical data presents a more nuanced picture. The last time Bitcoin experienced similar low transaction levels in October 2023, it was followed by a significant price rally that eventually pushed BTC beyond $100,000.

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Expert Analysis and Future Outlook

CryptoQuant analyst Axel Adler Jr’s Cycle Extreme indicator, which combines multiple on-chain metrics including MVRV Ratio and SOPR, currently shows no clear directional signals. This suggests that despite the low transaction count, other fundamental indicators remain neutral.

Bitcoin currently trades at $83,600, maintaining a modest 1% weekly gain despite the decreased network activity. While the transaction count decline raises concerns, historical patterns suggest this could be a temporary consolidation phase rather than a definitive bear market signal.

Source: NewsTC
March 20, 2025
Bitcoin CDD Alert: 60-Day Spike Signals Major Shift!
Market Overview

Bitcoin’s price has entered a critical phase, dropping below $85,000 amid significant market pressure. Currently trading at $84,397, BTC has recorded a concerning 2.4% decline in 24 hours and a substantial 13.7% weekly drop. This price action coincides with a remarkable surge in the 60-day Coin Days Destroyed (CDD) metric, potentially signaling a major market shift.

This development comes as Bitcoin tests crucial support levels around $80,000, adding another layer of significance to the current market dynamics.

Understanding the CDD Surge

The Coin Days Destroyed (CDD) metric, a sophisticated on-chain indicator that weighs economic activity by coin age, has reached levels not seen since 2021. This surge suggests unprecedented activity among long-term holders, who are moving their assets at an accelerated rate.
- Current CDD Level: Highest since 2021
- Observation Period: November 2024 to February 2025
- Key Implication: Increased long-term holder activity
Market Implications

According to CryptoQuant analyst Banker, this elevated CDD activity could indicate several scenarios:
- Strategic profit-taking by veteran investors
- Portfolio reallocation in anticipation of market volatility
- Potential market reset preparing for new capital inflow
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Technical Analysis

The current CDD pattern bears striking similarities to previous market turning points. Historical data suggests that such spikes often precede significant price movements, making this a crucial indicator for traders and investors alike.

Expert Perspectives

Market analysts emphasize that while the CDD spike is significant, it should be viewed within the broader market context. The combination of this metric with current price action could indicate an impending ‘healthy reset’ rather than a prolonged bearish phase.

Looking Ahead

As the market digests this significant on-chain activity, investors should monitor several key factors:
- Further CDD metric developments
- Price action around key support levels
- Overall market sentiment shifts
- Institutional investor behavior
Source: NewsbtC
February 28, 2025